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The cryptocurrency market has been moving in a strong downward trend since the beginning of the week, with selling pressure increasing daily. Bitcoin’s (BTC) price dropped by approximately 3% in the last day, while Ethereum (ETH) experienced a 4.38% loss. This situation creates a negative atmosphere in the cryptocurrency market and causes skepticism towards ETH, which is a guide for altcoins.
Ethereum’s Price and Technical Indicators
Ethereum formed multiple technical formations in the daily timeframe and traded within these formations for a while. Specifically, the altcoin king, which has been trading in a descending channel since mid-May, maintained this trend, but the price fluctuations in the cryptocurrency market in July resulted in ETH retesting the support level at $2,800.
As a result of this retest, an ascending channel formation emerged. However, in the early hours of the day, ETH broke below this ascending channel.
Simple Moving Average (SMA) continues to form resistance on Ethereum’s price chart, indicating a bearish trend in the market. Additionally, the Relative Strength Index (RSI) failed to pass its neutral point and drew a downward curve on the average trend line. All these significant technical indicators present a negative outlook for ETH in the short term.
Analysis of Spot Ethereum ETFs and Future Expectations for ETH
Grayscale’s “ETH” fund recorded an inflow of $19.8 million, while Fidelity’s “FETH” fund recorded an inflow of $18.8 million. Other funds similarly recorded inflows, while Grayscale’s “ETHE” fund recorded an outflow of $133.3 million. Despite a total inflow of $1.49 billion, the Spot Ethereum ETFs have a negative total flow of $483.6 million.
If the cryptocurrency market gains momentum, Ethereum’s price could retest the resistance level at $3,300. Additionally, increasing positive sentiments in the cryptocurrency market could lead ETH to break out of the descending channel formation and move towards $3,700. Conversely, if bears continue to dominate the market, the altcoin king’s price could drop to the critical support level at $2,800 within this month.
