ETH Price Struggles to Find Support Amid Ongoing Pressure
The current state of the ETH price is causing concern for investors as it continues to face downward pressure since mid-May. Despite multiple attempts to keep the price above $2,000, losses have taken a toll on investor confidence.
Weak Market Structure Challenges ETH Price
The market structure for ETH is weak, and both technical and macro factors suggest further losses before a significant trend reversal can occur.
Key Support Level to Watch
Traders should closely monitor the 200-weekly Exponential Moving Average (EMA), which is currently holding the support level at $1,630. If the price falls below this level, the next significant support is at $1,350.
Bears in Control, Reversal Unlikely
The Relative Strength Index (RSI) indicates that bears have a firm grip on the market, making it difficult for a trend reversal to occur without significant intervention.
Potential Catalyst: SEC Approval of ETH Futures-Based ETF
If the Securities and Exchange Commission (SEC) approves the first futures-based Ethereum exchange-traded fund (ETF) in September or October, history suggests that the ETH price could experience a 60% rebound, similar to what happened with Bitcoin in the past.
Ark Invest’s Proposal for Spot ETH ETF
Cathie Wood’s Ark Invest has filed a proposal with the SEC for a spot Ethereum ETF, similar to the delayed spot BTC ETFs. Experts believe that the SEC will likely approve more ETH ETF proposals, increasing the chances of overall approval.
Major Buyer Congestion Zone
The price range between $1,530 and $1,630 is a significant zone of buyer congestion. Therefore, long-term Ethereum holders should not worry as long as the price remains within this range.
Hot Take: Future of ETH Price Depends on Regulatory Approval
The future direction of the ETH price hinges on regulatory decisions, particularly the approval of ETFs. If approved, it could lead to a significant rebound in price, providing a potential opportunity for investors.
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