- Summary:
- Ethereum price has been bearish in the second half of the year, and we examine how it relates to ETF approval and a break below a key level.
Ethereum price has struggled in the second half of the year, trading below the $3,500 mark since late July. The downward breakout below that mark triggered a bearish run that set it on course to register a four-month losing streak. ETH has not registered such a streak since November 2018, underlining the FUD sentiment that currently prevails in the market.
ETH price key indicators and impact of ETF
As of this writing, ETH price was up by 0.3 percent on the daily chart, recovering after its previous four-day winning streak was interrupted on Wednesday near the $3,400 mark. In addition, the crypto coin trades below the 20,50, 100 and 200-SMA levels. That means there’s an underlying bearish momentum that could slow down gains past the $3,400 psychological barrier.
Ethereum’s gains this year stand at a measly 2.7 percent, meaning it has underperformed comparable peers like Solana (+32.1% YTD), Bitcoin (+37.0% YTD), XRP (+12% YTD) and Tron (+43.3% YTD). Notably, the breakout below the $3,500 level came on the heels of the first spot Ether ETF approval by the Securities and Exchange Commission (SEC).
Unfortunately, the period that followed was punctuated with fears over potential recession in the US. Therefore, the ETF approval may have played a major role in the Ethereum price decline by dragging ETH into the mainstream asset markets. That said, it also infers that a recovery of market momentum after next week’s Fed interest rate decision could stimulate ETH price recovery.
ETH price prediction
Ethereum price has recently gone above the 20-SMA level on the 2-hour chart. The ETHUSD pair will likely keep gaining if it stays above the 2,345 pivot mark. With the buyers in control, the upward movement will likely proceed to 2,375 where it will encounter the first resistance.
However, if they break above that barrier, they will strengthen their momentum to potentially test 2,400. On the downside, a break below 2,345 will signal bearish control. Initial support will likely be at 2,320, but extended control could enable a breach of the first support and invalidate the upside narrative. Also, that could send the price lower to test 2,302.
