ethereum is holding firm at the time of writing, climbing rapidly after falling to around $2,800 earlier this month. At the time of writing, the second most valuable coin is up over $24% and remains in an uptrend despite the scare on July 4 and 5.
ethereum finds strong resistance at $3500
Although buyers are hoping that eth bulls will push ahead and push the coin above $3,700, a key resistance line, on-chain data shows that resistance exists. According to IntoTheBlock x.com/intotheblock/status/1815355016619655677″ target=”_blank”>data On July 22, eth has strong resistance at $3,500, which has been the case since July 16.
At this level, 3.13 million unique addresses purchased eth at an average price of $3,547. Therefore, if prices trend below this level, these holders are in the red and contemplating exiting at a loss.
<img class="size-full wp-image-630951" src="https://technicalterrence.com/wp-content/uploads/2024/07/Ethereum-Pulls-Back-Here39s-Why-ETH-Bulls-Need-to-Decisively.jpg" alt="Over 3 million eth addresses purchased at $3,547 | Source: @intotheblock via x” srcset=”https://technicalterrence.com/wp-content/uploads/2024/07/Ethereum-Pulls-Back-Here39s-Why-ETH-Bulls-Need-to-Decisively.jpg?w=1704 1704w, https://technicalterrence.com/wp-content/uploads/2024/07/Ethereum-Pulls-Back-Here39s-Why-ETH-Bulls-Need-to-Decisively.jpg?w=460 460w, https://technicalterrence.com/wp-content/uploads/2024/07/Ethereum-Pulls-Back-Here39s-Why-ETH-Bulls-Need-to-Decisively.jpg?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/07/Ethereum-Pulls-Back-Here39s-Why-ETH-Bulls-Need-to-Decisively.jpg?w=860 860w, https://technicalterrence.com/wp-content/uploads/2024/07/Ethereum-Pulls-Back-Here39s-Why-ETH-Bulls-Need-to-Decisively.jpg?w=1536 1536w, https://technicalterrence.com/wp-content/uploads/2024/07/Ethereum-Pulls-Back-Here39s-Why-ETH-Bulls-Need-to-Decisively.jpg?w=750 750w, https://technicalterrence.com/wp-content/uploads/2024/07/Ethereum-Pulls-Back-Here39s-Why-ETH-Bulls-Need-to-Decisively.jpg?w=1140 1140w” />
The fact that some addresses are willing to dump their positions and exit the market when prices fall makes the overall environment fragile, which is a considerable obstacle to the upside. This makes the situation even more dire, considering that eth is not that firm despite the expansion on July 15.
On the daily chart, the uptrend remains, but there are weak spots due to the intensity of the declines on July 4 and 5. The sell-off forced eth to rise towards the $2,800 level, reversing the gains from May 20.
x/Gwe4Rmbj/”>x/Gwe4Rmbj/” alt=”ethereum price shows an upward trend on the daily chart | Source: ETHUSDT on Binance, TradingView” />
For buyers to take control and reaffirm the July 15 uptrend, prices need to break above $3,500, but more importantly, $3,700. This reaction line is crucial and is the only local resistance that buyers need to overcome for eth to float above $3,900 and $4,100.
Millions of eth withdrawn from exchanges and spot ETF launch boosts demand
For now, there is strength in the on-chain analysis reading. Although more than three million users are in the red, more eth continues to move from exchanges.
On July 19, IntoTheBlock data x.com/intotheblock/status/1814240217903067451″ target=”_blank”>revealed
<img class="wp-image-630950 size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/07/1721679230_528_Ethereum-Pulls-Back-Here39s-Why-ETH-Bulls-Need-to-Decisively.jpg" alt="eth outflows from major exchanges | Source: @intotheblock via x” srcset=”https://www.newsbtc.com/wp-content/uploads/2024/07/GS120Q7W8AA-0c2.jpg?w=698 698w, https://www.newsbtc.com/wp-content/uploads/2024/07/GS120Q7W8AA-0c2.jpg?w=200 200w, https://technicalterrence.com/wp-content/uploads/2024/07/1721679230_528_Ethereum-Pulls-Back-Here39s-Why-ETH-Bulls-Need-to-Decisively.jpg 460w, https://www.newsbtc.com/wp-content/uploads/2024/07/GS120Q7W8AA-0c2.jpg?w=46 46w, https://www.newsbtc.com/wp-content/uploads/2024/07/GS120Q7W8AA-0c2.jpg?w=82 82w, https://www.newsbtc.com/wp-content/uploads/2024/07/GS120Q7W8AA-0c2.jpg?w=75 75w, https://www.newsbtc.com/wp-content/uploads/2024/07/GS120Q7W8AA-0c2.jpg?w=350 350w” />
If the US Securities and Exchange Commission (SEC) gives the green light to these products this week, it would be a huge win for eth.
The regulatory clarity that comes with this move will be important. US SEC officials have yet to clarify eth’s status.
However, once ethereum ETFs are listed on various exchanges in the country, it will be assumed that the regulator will agree that the second most valuable currency is a commodity, just like bitcoin.
