ethereum, which mirrors the performance of bitcoin and other major altcoins, has returned to surpass $3,000, days after dipping below $2,800. As the second-most valuable coin recovers, injecting optimism among token holders and traders who were dumped, a close above $3,200 will be crucial to catalyze demand.
According to IntoTheBlock on July 10, if ethereumx.com/intotheblock/status/1810999154761470244″ target=”_blank” rel=”nofollow”>edges up The $3200 level will be a big breakthrough for traders. When this happens, approximately two million entities that traded eth at this price level will be in the money.
<img decoding="async" class="size-full wp-image-629010" src="https://technicalterrence.com/wp-content/uploads/2024/07/Ethereum-is-on-the-rise-and-2-million-addresses-will.jpg" alt="Roughly 2 million traders will be in the green if eth breaks $3200 | Source: @intotheblock via x” width=”1024″ height=”176″ srcset=”https://technicalterrence.com/wp-content/uploads/2024/07/Ethereum-is-on-the-rise-and-2-million-addresses-will.jpg?w=1717 1717w, https://technicalterrence.com/wp-content/uploads/2024/07/Ethereum-is-on-the-rise-and-2-million-addresses-will.jpg?w=460 460w, https://technicalterrence.com/wp-content/uploads/2024/07/Ethereum-is-on-the-rise-and-2-million-addresses-will.jpg?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/07/Ethereum-is-on-the-rise-and-2-million-addresses-will.jpg?w=860 860w, https://technicalterrence.com/wp-content/uploads/2024/07/Ethereum-is-on-the-rise-and-2-million-addresses-will.jpg?w=1536 1536w, https://technicalterrence.com/wp-content/uploads/2024/07/Ethereum-is-on-the-rise-and-2-million-addresses-will.jpg?w=750 750w, https://technicalterrence.com/wp-content/uploads/2024/07/Ethereum-is-on-the-rise-and-2-million-addresses-will.jpg?w=1140 1140w” sizes=”(max-width: 1000px) 100vw, 1000px” loading=”lazy” data-recalc-dims=”1″/>Roughly 2 million traders will be in the green if eth breaks $3200 | Source: @intotheblock via x
Therefore, if prices retest this level, those who bought can exit at breakeven. Alternatively, other “diamond traders”, who expect further profits on the horizon, can double their bet and take advantage of the expected upward leg.
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So far, there are signs of strength. However, while sellers are still in control, a breakout of $3,300 will be crucial in the short to medium term. The $3,300 level, looking at the ETHUSDT candlestick arrangement on the daily chart, was previously support, but is now resistance.
x/t2C7KHL2/”>x/t2C7KHL2/” alt=”ethereum price moves sideways on the daily chart | Source: ETHUSDT on Binance, TradingView” width=”1233″ height=”592″ loading=”lazy”/>ethereum price moves sideways on the daily chart | Source: x/t2C7KHL2/” target=”_blank”>ETHUSDT on Binance, TradingView
A breakout, ideally with increasing volume, will likely serve as a basis for further gains, lifting the coin towards a key settlement level at $3,700 and then $3,900.
Conversely, if sellers take control, reversing recent gains and aligning with the losses of July 4 and 5, a drop below $2,800 will signal a continuation of the trend. Looking at the candles, ethereum will fall to new multi-week lows in that case, even dropping to $2,500.
Spot ETFs in focus, whales pile in as eth becomes scarce
Overall, analysts are optimistic and expect ethereum to move higher. The planned launch of spot ethereum exchange-traded funds (ETFs) in the coming days is a major catalyst behind this bullish outlook.
Much like bitcoin ETFs opened the floodgates for institutional exposure to the world’s most valuable coin, the same influx is likely to be seen in eth. With institutional demand, proponents believe eth will skyrocket higher, surpassing $4,100 and recording new 2024 highs in the coming months.
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Interestingly, even the expectations of a spot ethereum ETF launch don’t seem to change traders’ outlook. On-chain data reveals that bullish sentiment is at a standstill. x.com/QuintenFrancois/status/1810617178107838482″ target=”_blank” rel=”nofollow”>minimum of one yearindicating caution among eth holders.
<img loading="lazy" decoding="async" class="size-full wp-image-629015" src="https://technicalterrence.com/wp-content/uploads/2024/07/1720638730_575_Ethereum-is-on-the-rise-and-2-million-addresses-will.jpg" alt="eth traders are bearish | Source: @QuintenFrancois via x” width=”1024″ height=”677″ srcset=”https://technicalterrence.com/wp-content/uploads/2024/07/1720638730_575_Ethereum-is-on-the-rise-and-2-million-addresses-will.jpg?w=1576 1576w, https://technicalterrence.com/wp-content/uploads/2024/07/1720638730_575_Ethereum-is-on-the-rise-and-2-million-addresses-will.jpg?w=460 460w, https://technicalterrence.com/wp-content/uploads/2024/07/1720638730_575_Ethereum-is-on-the-rise-and-2-million-addresses-will.jpg?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/07/1720638730_575_Ethereum-is-on-the-rise-and-2-million-addresses-will.jpg?w=860 860w, https://technicalterrence.com/wp-content/uploads/2024/07/1720638730_575_Ethereum-is-on-the-rise-and-2-million-addresses-will.jpg?w=1536 1536w, https://technicalterrence.com/wp-content/uploads/2024/07/1720638730_575_Ethereum-is-on-the-rise-and-2-million-addresses-will.jpg?w=750 750w, https://technicalterrence.com/wp-content/uploads/2024/07/1720638730_575_Ethereum-is-on-the-rise-and-2-million-addresses-will.jpg?w=1140 1140w” sizes=”(max-width: 1000px) 100vw, 1000px” data-recalc-dims=”1″/>eth traders are bearish | Source: @QuintenFrancois via x
Meanwhile, as on-chain datax.com/ms2capital/status/1810786488260661393″ target=”_blank” rel=”nofollow”> illustrateseth outflows from exchanges have recently increased. All exchanges, including Binance and Coinbase, control 10.17% of eth in circulation. The parallel data also x.com/LeonWaidmann/status/1810943563641016835″ target=”_blank” rel=”nofollow”>sample while another portion, representing 28% of all eth in circulation, is staked.
