By CoinGape
Ethereum Price Forecast: Investors appear worried as a major correction paints price charts in the cryptocurrency market red in July. Collectively, the market has in the last few months tumbled to $2 trillion from $2.8 trillion—a milestone achieved in March.
Like most cryptos, Ethereum could not withstand the increasing pressure on the sell side. The second-largest digital asset extended the correction below the critical $3,000 level.
Ether is down 7% to $2,940 on Friday in addition to 16.5% in the last seven days, CoinGecko data shows. Nonetheless, the trading volume has surged by almost 60% to $30 billion, underlining a dramatic increase in selling activity.
Ethereum Price Forecast: Is the Dip a Buying Opportunity or Trap?
Despite the upcoming approval of Ethereum ETFs, bearish sentiment continues to swell. Investors thought the up rally to $3,975 in June marketed the beginning of a long-term bull run but it has in the last few weeks proved to be a trap.
The Securities and Exchange Commission (SEC) is currently reviewing individual Ether ETF applications ahead of the live trading. However, headwinds in the market are leaving no stone unturned while turning crypto portfolios upside down.
While the actual trading of Ethereum ETFs would be a game changer, especially for altcoins eyeing a similar milestone, the ongoing dip has many worried about how far it can go.
Based on the Ethereum price prediction, the token of the smart contracts now holds below all three key Exponential Moving Average (EMAs) including the 20-day, the 50-day, and the 100-day.
Chances are that the downtrend will continue into the weekend, considering the Relative Strength Index (RSI) persistent drop.
Should sellers intensify their activities, Ethereum might breach a previously tested support at $2,800, highlighted in black on the chart. Such a move could further destabilize ETH price thus accentuating the sell-off to $2,500.
The Money Flow Index (MFI) an indicator that tracks the flow of money in and out of Ethereum markets, shows signs of bottoming out above the oversold region.
If selling pressure equalizes buying pressure, ETH will start to move sideways, giving recovery a chance in the coming days.
A potential double-bottom pattern from support at $2,800 could also influence the trend reversal. The last time Ethereum price tested this support area, a major upswing erupted to $3,975.
In the short term, traders can watch out for the reclamation of support at $3,000 where, ETH could consolidate awaiting the next catalyst, possibly the spot ETF approval to ignite a major rebound past $4,000.
Frequently Asked Questions (FAQs)
Although they are both cryptocurrencies, ETH and BTC do not share the same blockchain technology. Ethereum is a proof-of-stake protocol while BTC is a proof-of-work network.
Possibly, but considering Bitcoin’s dominance in the market, this achievement would take a long time.
ETH ETFs could start trading 3 days after the final S-1 filings. This is projected to be around mid-July.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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