ETH Price Drop To $3.5K Likely Before Fresh Run Above $4K

Key point:

Ether (ETH) gained 57% over the past month, but consistent selling near $4,000 is putting a cap on the price upside. Independent market analyst Adam pointed to sell walls in the zone and said that even though “ETH is so back,” its price could lose momentum until these are either filled or pulled.” 

Aside from technicals, the bulk of ETH’s price move lined up with the launch of multiple Ether treasuries. Since June, Bitmine Immersion Tech and SharpLink Gaming have acquired 566,800 and 360,800 ETH, respectively, and data from Farside Investors shows Ethereum spot ETF inflows topping $1.84 billion in the last 7 days. The current total net assets for the spot ETH ETFs now exceed $20.6 billion.

Despite a dedicated commitment to stockpiling ETH, SharpLink Gaming’s SBET and Bitmine Immersion Tech’s BMNR stock are down 36.4% and 14.52% over the past week, but the decline comes after each stock had a respective 565% and 381% rally over the past three months. 

Related: Ethereum price headed for $4K showdown: Is this time different?

From a technical standpoint, ETH’s higher time frame market structure shows a confirmed inverse-head-and-shoulders pattern with a target at $4,300, but beyond the steady purchasing by institutional investors (ETFs and ETH treasuries), funding rates remain neutral, suggesting that risk-loving traders are hesitant to boost their use of margin around a multi-year resistance level.

Some traders, including independent market analyst Michael Van de Poppe, believe that “liquidity on the longside [is] ready to be taken,” suggesting a brief retrace to the $3,500 to $3,300 zone will occur before a rally through the $4,000 resistance. 

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.