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The price of Ethereum (ETH) has experienced swings, falling by more than 3% from intraday highs of $3540 to lows of $3425 on Tuesday. The rapid fall from just above $3550, the critical price level beyond which strong selling pressure was exerted led to an abrupt slump to around $3400. Despite today’s launch of spot Ethereum ETFs, the current market mood is uncertain as it battles to maintain levels above $3500.Ethereum trades at $3527.74 after buyers surged over the last four hours.
Despite the recent bearish reversal, Ethereum has risen back above its 50-day Exponential Moving Average (EMA) now at $3400 which is potentially bullish if sustained. Henceforth Ethereum’s technical setup suggests cautious optimism.
The digital currency stabilized near support at $3,500 after plunging recently. In case it holds and grabs it again or even passes it through to target higher resistance areas at about $3700 and subsequent levels soon enough at around $3,700. Nonetheless; if this support fails there is a very important one close by which can be found right here on this 100-day EMA for around $3,300. Hereafter, should this barrier break down then the next level might be tested by Ethereum going below $2,510.
The market sentiment is mixed as indicated by the Relative Strength Index (RSI) hovering near mid-range hinting presence of buyers but canceled out by equally strong sellers’ pressure. The current RSI just above the neutral 50 mark means that neither oversold nor overbought conditions are prevailing in the market hence no clear bias for direction currently.
The market sentiment is mixed as seen from RSI hovering near midpoint showing buying interest against equal selling momentum which resulted in decreased ETH prices recently.“Midfield” RSI point higher than the neutral line indicates that the market is neither overbought nor oversold thus there are no biases so far.
Predictions by analysts indicate a retreat after the ETF launch, which may drive prices below $2,800 before another range.
BlackRock as well as Fidelity are among institutional investors that have demonstrated Ethereum interest as well as facilitating access and trading different cryptocurrencies using exchange-traded funds (ETFs) thus putting a positive inpact on ETH price.
However, even after approving ETF of Ethereum, its price hasn’t risen much. The possible effects of ETF inflows on the market as well as Grayscale’s Ethereum Trust becoming a spot ETF can result in significant changes in ETH rates in near future.
