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The altcoins King is currently trading at $3,382.04. The digital asset has seen a decline of 1.92% in the last 24 hours and 3.39% in the last 7 days. Despite these short-term dips Ethereum market cap stands strong at $406.6 billion maintaining its position as the second-largest crypto asset. The 24-hour trading volume is $11.9 billion ranking third in the crypto market.
Reports suggest the U.S. Securities and Exchange Commission (SEC) could approve an Ethereum ETF as soon as July 4. This news comes on the heels of nearly eight firms submitting S-1 amendments to the SEC last week preparing for a potential spot Ethereum ETF launch in early July.
Analysts emphasize the importance of the next two weeks for the crypto market. He believes the approval of a spot Ethereum ETF could significantly impact the sector and potentially reignite an upward trend in crypto prices.
Adding to the optimism, Standard Chartered predicts that the approval of spot Ethereum ETFs could lead to inflows of up to $45 billion within the first year. According to their forecast, this influx of capital could potentially drive the ETH price to $8K by the end of 2024.
Despite the positive sentiment surrounding potential ETF approvals, ETH price action tells a different story in the short term. ETH recently broke down from a bullish flag pattern after reaching a high of $3,973 on May 27 as seen in our previous report. This breakdown invalidated the near-term bullish pressure.
The price has been trading bearishly since then and appears set to retest the demand zone marked on the chart. This zone is where the price is most likely to retrace clearing liquidity and filling the fair value gap left on May 20.
The daily Relative Strength Index (RSI) currently stands at 42 indicating bearish momentum. There's still room for more downward pressure before the RSI reaches oversold territory. The Moving Average Convergence Divergence (MACD) also supports this bearish outlook with the MACD line below the signal line.
The 4-hour chart backs up this bearish sentiment showing a steady price decline. The breach of key support levels and the subsequent dip highlight the intensity of the downward momentum.
On-chain data from The Block shows that ETH daily transaction volume (7-day moving average) has been declining since late May and currently at $3.4 billion, down from a high of $6.11 billion on May 27. This decrease in on-chain volume could indicate reduced network activity and potentially lower demand in the short term
However it's not all bearish news. Data from DeFiLlama shows that the Total Value Locked (TVL) in Ethereum-based protocols has been steadily increasing suggesting a positive long-term trend in DeFi adoption on the Ethereum network. The current TVL stands at $58.072 billion.
Ethereum price forecast from Changelly suggests a 1.58% increase projecting a price of $3,497.34 by June 30 2024. Technical indicators signal a bullish sentiment at 76% while the Fear & Greed Index displays a score of 47 indicating a neutral market sentiment.
Over the past 30 days Ethereum has experienced 12 green days (40% of the time) and shown a price volatility of 3.85%.
