Ethereum (ETH) price has been trading sideways for the past few weeks. Currently, the price of the L1 token is $1853, a 1.05% decline from its previous close. The next few weeks are going to be very critical for ETH price, as it is currently retesting a crucial demand zone and the trendline.
The price of Ethereum (ETH) dropped by about 1.9% last week. This was due to the sideways price action of Bitcoin, which apparently made altcoin holders sell their coins in frustration. It is also evident from the BTC dominance, which has risen in the past 24 hrs.
The U.S. Securities and Exchange Commission (SEC) has received applications from six major institutions for Ethereum futures exchange-traded funds (ETF). If the above applications get approved, the institutional demand for ETH is expected to rise. This could have positive pressure on the Ethereum price, which is trading 62.4% below its 2021 all-time high.
A major reason behind the ongoing bearish sentiment in the crypto market could be the recent crackdown by the SEC against major players in the industry. The commission is trying its best to categorize cryptocurrencies other than BTC, as securities. Ripple’s victory in the SEC lawsuit gave a breath of fresh air, but the regulator has still raised concerns over the court’s ruling. This suggests that the SEC could be preparing for its next move.
The following Ethereum price chart below shows that the price is currently respecting the downward trendline. The price has already bounced off three times from this trendline this year. In the chart, we can also see a key demand zone that is acting as a strong support. If the price breaks below both the trendline and the demand zone, we can expect the bears to push the price to $1368.
Ethereum price prediction will flip bearish if it closes a day below $1,811. So far the bullish market structure is intact, and a bounce from the trendline might trigger another retest of $2,000. In this case, a valid target for the bulls could be the July high, which lies around $2031.
In the meantime, I’ll keep sharing updated ETH price analysis and my personal trades on my Twitter, where you are welcome to follow me.
This post was last modified on Aug 02, 2023, 19:41 BST 19:41