Ethereum ETFs Launch Announced, Crypto Rebounds More Than 20%! Analysis of July 17, 2024

After reaching the low end of its range, Ethereum rebounded almost 22% Let’s take a look at the future outlook for ETH.

Ethereum (ETH) Price Status

After reaching the lower part of its range around $2,900, the area mentioned in the bearish hypothesis of the June 26 analysis, Ethereum attracted buying interest allowing it to rebound by more than 22%. In less than two weeks, the price of the crypto has regained $3,500. It seems that this rise was accelerated by the announcement of the launch of Ethereum spot ETFs. Now, ETH has stabilized around its resistance. The most significant value areas are located on either side of the crypto: below the current price, we can note $3,065. Above, we can identify the one at $3,800.

A value zone is a volume-rich price range that can act as a key level for investors.

At the time of writing, Ethereum is trading just below $3,500. ETH’s latest movements show a short-term bearish trend that is about to be reversed, which could signal a continuation of the crypto’s medium- to long-term bullish trend. This can be supported by the fact that Ethereum has managed to reposition itself above the 200-day moving average. Unsurprisingly, Ethereum’s momentum has picked up again, as evidenced by its price and oscillators. All of this clearly demonstrates a resurgence in buying interest in Ethereum.

The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Now a trainer at Family Tradinga community of thousands of self-employed traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and friendly atmosphere.

Zoom on derivatives (ETHUSDT)

The open interest of Ethereum perpetual contracts seems to have followed the trajectory of its underlying price. This demonstrates an increase in speculator activity on ETH. In view of the recent rise of Ethereum, the recent liquidations predominantly selling, as well as a positive funding rate, the optimism regarding Ethereum is evident. It can naturally be concluded that this interest in ETH/USDT contracts is predominantly oriented towards buying. This thus reinforces the conviction of a continuation of the bullish momentum of the cryptocurrency.

The ETH/USDT three-month liquidation heatmap reveals that the previously identified liquidation zone at $2,850 has been reached and likely attracted buying interest. Now, the most pronounced liquidation zones are mostly above Ethereum’s current price. Note the $3,500-$3,600 zone, and just above that, the $3,650-$3,750 zone. Further up, the most significant zone is at $3,900. Below the current price, however, is $3,000. As the price approaches these levels, it could trigger a massive trigger of orders, increasing the risk of a period of heightened volatility for Ethereum. These zones therefore represent a crucial point of interest for investors.

Ethereum (ETH) Price Hypotheses

• If Ethereum's price stays above $3,065, we could anticipate a bullish continuation causing a break of $3,500. The next resistance to consider would then be around $3,700 or even $3,800. If the bullish movement continues, this could suggest reaching $4,000 or even $4,100. At this point, this would represent an increase of more than 18%.

• If Ethereum fails to hold above $3,065, we could see a return to around $2,900. The next support to consider, if the bearish move continues, would be around $2,800. Further down, we can see support at $2,720. At this point, this would represent a decline of around 21%.

Conclusion

After re-entering the lower part of its range, Ethereum has shown a significant rebound. Buying interest in the crypto thus seems to have strengthened, supported by recent announcements and a medium and long-term bullish trend that seems set to continue. Thus, optimism seems to dominate regarding the future of the cryptocurrency. Nevertheless, it will be crucial to carefully observe the price reaction at the various key levels to confirm or deny current hypotheses. It is also important to remain vigilant against potential market “fake outs” and “squeezes” in each scenario. Finally, let us remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies can also evolve rapidly according to other more fundamental factors.