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Ethereum Bull Run Sustained, Bad News: Speculators Are In

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Like Bitcoin and top altcoins, including Solana, Ethereum is holding steady. At the time of writing, it is trading above the local support at $3,300 and floating higher, targeting $3,700.

Speculators Flowing To ETH As Bulls Set Sight On $3,700

The leg up is fueled by multiple market-related factors, mainly the anticipated launch of spot Ethereum ETFs in the next few days. As seen from the daily chart, news of the United States Securities and Exchange Commission (SEC) fast-tracking the approval of 19b-4 forms sparked a wave of demand from May 20.

However, speculators are permeating the scene even as prices remain steady and uptrend. CryptoQuant data shows that the estimated leverage ratio has risen in the past few trading days.

With this reading ticking higher, the ETH scene receives more leveraged traders keen more on profiting from price volatility rather than benefiting from what ETH as a digital asset presents.

According to CryptoQuant, the estimated leverage ratio stood at 0.347 on July 16 before rising to 0.354 on July 17. The expansion suggests that traders are increasingly borrowing funds on perpetual trading platforms like Binance and OKX, hoping to make a killing if ETH bulls push prices above $3,700.

Ethereum estimated leverage ratio | Source: CryptoQuant
Ethereum estimated leverage ratio | Source: CryptoQuant

As prices rally, the estimated leverage ratio will likely climb even higher. The local top is at 0.358, as recorded on July 14. The all-time leverage ratio was at 0.392, registered in early July 2024.

Eyes On Spot Ethereum ETFs: Will It Be A Success?

Ethereum traders are confident that prices will rise, even breaching all-time highs, once spot ETH ETFs are launched. The latest reports show that the derivative product will launch early next week, allowing institutional investors to gain exposure.

Ethereum price trending upward on the daily chart | Source: ETHUSDT on Binance, TradingView
Ethereum price trending upward on the daily chart | Source: ETHUSDT on Binance, TradingView

The United States SEC has given the green light to three issuers to launch. However, it is expected that all spot Ethereum ETF applicants whose 19b-4 forms have been approved will be permitted to launch simultaneously.

Confidence is high that spot Ethereum ETFs will follow the success of their spot Bitcoin ETFs. According to SosoValue, all spot Bitcoin ETF issuers manage over $53 billion of BTC as of July 18.

Spot Bitcoin ETFs AUM | Source: SosoValue
Spot Bitcoin ETFs AUM | Source: SosoValue

Even so, though highly anticipated and likely to positively impact prices, the product will see a different level of demand than when spot Bitcoin ETFs launched.

Analysts pin this to Ethereum’s lower market cap and the United States SEC’s decision not to allow spot ETF issuers to stake ETH. By staking, issuers would receive rewards on behalf of their clients.

Feature image from Canva, chart from TradingView



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Ethereum

$2,300 Emerges As The Most Crucial Resistance

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As Ethereum (ETH) continues to experience a significant price downturn, recording a 17% drop over the past month, key resistance levels have emerged as critical points for the second-largest cryptocurrency. Analysts suggest that these levels could ignite a potential trend reversal if reclaimed.

Ethereum Faces Potential Decline To $1,155

In a recent update shared on social media platform X (formerly Twitter), crypto analyst Ali Martinez highlighted two pivotal price points for Ethereum’s immediate future. 

The first, set at $2,100, is seen as a necessary threshold for initiating a new upward trend. However, the $2,300 mark is regarded as a “more decisive” level that Ethereum must breach to confirm a bullish reversal.

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Martinez’s analysis, based on the one-day chart seen below, indicates that if Ethereum fails to reclaim these levels, it may lead to a further decline. 

Ethereum
Key price points for ETH on the daily chart. Source: ETHUSDT on TradingView.com

The next target points to watch would be $1,600 and $1,155, levels that could indicate a new downtrend. Such a decline would represent additional losses of 12% and over 37%, respectively, marking a troubling continuation of Ethereum’s worst first quarter in its history.

In another post, the analyst also pointed out that the Ethereum price is facing a significant resistance wall between $2,200 and $2,580. On-chain data from the analytics firm IntoTheBlock reveals that approximately 12.43 million investors have bought about 66.18 million ETH within this price range. 

A breakout above these levels could potentially generate bullish momentum for the cryptocurrency. However, bullish catalysts that could trigger a move above these levels remain scarce among experts.

ETH’s Largest Accumulation Zone Under Threat

Market intelligence firm Glassnode has indicated that ETH’s Cost Basis Distribution shows limited support near current prices. Weekly data suggests that addresses with a cost basis around $1,800 have not re-engaged. Many investors are reportedly selling at a loss, further adding to the current price uncertainty.

On March 28, several clusters of approximately 250,000 ETH with cost bases between $2,000 and $2,050 effectively vanished, indicating that some higher-cost holders are attempting to average down their positions. 

However, Glassnode asserts that the overall Ethereum accumulation zone appears limited at current price levels, raising questions about future stabilization for the second largest cryptocurrency.

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The largest accumulation zone below the current market price now sits at $1,537, where nearly 994,000 ETH was acquired. If the downtrend continues, this level is expected to serve as structural support in the near term, potentially providing a buffer against further declines.

Ethereum
The daily chart shows ETH’s price trending downwards. Source: ETHUSDT on TradingView.com

ETH is currently trading at $1,830, down 12% for the week.

Featured image from DALL-E, chart from TradingView.com 



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Ethereum May Have To Undo This Death Cross For Bull’s Return

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A quant has revealed how Ethereum (ETH) saw a death cross in this indicator shortly before bearish momentum took the asset in full force.

Ethereum Formed A Death Cross In Funding Rates Earlier

In a CryptoQuant Quicktake post, an analyst has shared a chart for the Funding Rates of Ethereum. The “Funding Rates” refers to a metric that keeps track of the amount of periodic fee that traders on the derivatives market are exchanging between each other right now.

When the value of this indicator is positive, it means the long contract holders are paying a premium to the short investors in order to hold onto their positions. Such a trend suggests a bullish sentiment is shared by the majority of the derivatives traders.

On the other hand, the metric being under the zero mark implies a bearish mentality is dominant in the sector, as short holders are overwhelming the long ones.

Now, here is the chart for the Ethereum Funding Rates posted by the quant, which shows the trend in the 50-day and 200-day simple moving averages (SMAs) of the indicator over the last couple of years:

Ethereum Funding Rates

Looks like these two lines saw a crossover earlier in the year | Source: CryptoQuant

As displayed in the above graph, the 50-day SMA of the Ethereum Funding Rates crossed under the 200-day SMA in January of this year. This suggests that the optimism in the market witnessed a shift.

From the graph, it’s visible that since the crossover in the two SMAs of the indicator has emerged, the ETH price has been sharply moving down. The trend isn’t unique to the asset, as the wider cryptocurrency sector has also seen a similar pattern, with investors becoming risk-averse.

In the first half of last year, the Funding Rates observed the same type of crossover, and then, the Ethereum price followed up with a period of bearish action.

It wasn’t until the reverse crossover happened, with the 50-day SMA finding a break above the 200-day SMA, that bullish momentum returned in the cryptocurrency market. The same pattern was also seen back in 2023.

It’s possible that for constructive price action to return for Ethereum and other assets, a bullish crossover in the Funding Rates may once again have to take place. “When the speculators return and start using their greedy leverage, the crypto bull market will begin,” notes the analyst.

When this would happen, however, is anyone’s guess, as the 50-day and 200-day SMAs of the indicator are currently quite far apart. In 2024, the lines took many months before they crossed back, so it’s possible that it will take some time for the crossover to occur now as well.

ETH Price

Ethereum is moving to end the month of March on a red note as its price has fallen to the $1,800 level, after seeing a decline of almost 14% in the past week.

Ethereum Price Chart

The trend in the ETH price over the last five days | Source: ETHUSDT on TradingView

Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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Ethereum’s Price Dips, But Investors Seize The Opportunity To Stack Up More ETH

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Comparing current price action with past performances, Ethereum, the second-largest crypto asset, seems to have witnessed its worst-ever first quarter as it draws closer to its end. However, many investors are expressing interest in ETH’s prospects again, purchasing the asset in huge chunks.

Investors Buying The Ethereum’s Price Dip

Ethereum has continued to struggle to undergo a major upward move even as other digital assets make history in the ongoing market cycle. Despite the recent pullback in ETH’s price, Ali Martinez, a seasoned crypto analyst and trader, has highlighted a renewed bullish sentiment among investors.

Specifically, investors are seizing the opportunity to stack up on ETH in light of ongoing price correction, signaling interest and confidence in the asset’s long-term potential. This buying activity suggests that seasoned traders are considering the current drop as a strategic entry or buying point.

According to Ali Martinez, the development was spotted as Ethereum encountered a significant resistance wall between the $2,200 and $2,580 price mark. Examining the data from IntoTheBlock, the expert reported that over 12.43 million investors purchased a massive portion of 66.18 million ETH within the $2,200 and $2,580 price zones. 

These kinds of accumulation show that both retail and institutional investors are hopeful about the market. Should this substantial buying activity extend, Ali Martinez is confident that bullish momentum might build up for ETH, leading to a break above the zone. 

Ethereum
A rising interest in ETH | Source: Ali Martinez on X

Market analyst and trader CryptoELITES predicts a robust upswing for ETH to new all-time highs in the upcoming weeks. CryptoELITES prediction is based on past price trends in which ETH witnessed a massive rally after a lengthy period of downward movements.

Delving into the recent price action, the expert believes ETH’s correction has reached a bottom similar to the 2017 and 2021 bull market cycles. With the altcoin potentially reaching a bottom, CryptoELITES anticipates an over 700% upsurge in 2025.

A 700% surge will bring the altcoin’s price to the $15,000 milestone before the ongoing bull market cycle completes. Given that Ethereum is mirroring past trends, a possible price reversal could be on the horizon.

ETH Eyeing A Breakout From Key Chart Pattern

While ETH is facing volatility, it is presently at a critical junction that might determine its next move. Jonathan Carter, a crypto and technical analyst, reveals that Ethereum is holding above the lower boundary of a Descending Triangle formation after navigating its price in the 4-hour time frame.

At this zone, the asset might muster enough momentum for a rebound. Carter expects a bounce from the current support zone to push ETH toward key resistance levels at $1,950, $2,080, $2,230, and $2,320. However, if the altcoin falls below the support, the price may drop further to the downside.

Ethereum
ETH trading at $1,804 on the 1D chart | Source: ETHUSDT on Tradingview.com

Featured image from Pexels, chart from Tradingview.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.



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