The altcoins king is showing signs of potential recovery in the coming days. As of writing today ETH is trading at $3,083.78 with a slight decline of 0.28% in the last 24 hours. It holds a market cap of $370.4 billion and a 24-hour trading volume of $15.2 billion, a 10.47% increase in the past 24 hrs.
Recent macroeconomic developments have set the stage for a potentially bullish outlook on ETH. The US CPI for June released July 11th experienced a 0.1% decline from May beating market expectations and reaching a three-year low. This favorable economic indicator has led many analysts to anticipate a potential interest rate cut by the Federal Reserve in September which could bode well for risk assets like cryptos.
Adding on to the optimistic outlook is the growing expectation of spot ETH ETFs. While the SEC has yet to give final approval the regulatory body has made progress by approving 19b-4 filings in May. We now watch for the next round of S-1 filings with some speculating a potential launch week around July 15 for spot ETH ETFs.
The combination of these factors aligns with predictions from JP Morgan analysts who foresee a rebound in the crypto market come August. This confluence of events has many market participants eyeing a potentially positive third quarter for Ethereum.
From a technical point Ethereum recent price action shows a mixed picture. The asset recently broke down from a bullish flag pattern after reaching a high of $3,973 on May 27. This breakdown initially signaled bearish pressure in the near term with ETH finding support around $2,809.41 on July 5.
However short-term technicals have begun to shift towards a more bullish outlook. The Daily RSI currently sits at 38 having recovered from oversold territory below 30 just a few days ago. This suggests that selling pressure may be easing and could potentially lead to a recovery phase..
The MACD indicator on the daily timeframe still leans bearish with the MACD line below the signal line. However a bullish crossover appears likely to happen which could signal a potential trend reversal if it materializes.
It's worth noting that while these short-term indicators show promise Ethereum still needs to provide higher timeframe confirmation of a trend change before the overall bearish bias can be invalidated. We keep an eye on the bullish flag support level from May 20 as a potential area for a retest in case of further downside. If it continues trading to the upside, we anticipate it to gain up to the $3,520 level.
IntoTheBlock data provides positive insights into ETH holder profitability. Currently 76% of ETH holders are profitable while 20% are at a loss and 4% are breaking even. This suggests a relatively healthy distribution of profitable positions among investors.
Also the concentration of ETH among large holders stands at 51% indicating whale presence in the market. Renowned analyst Ali Martinez recently stated in his X account that after a brief distribution period Ethereum whales have resumed accumulating ETH which could be interpreted as a bullish signal.
Based on the provided data from Binance, there's a projected increase in value by 5% potentially reaching $3,132.33 by the end of the week.