The recent approval of spot Ethereum ETFs in the United States and Hong Kong has significantly increased overall crypto bullish sentiment amid heightened development activities.
Ethereum (ETH) price has struggled to rally beyond $4K despite the recent approval of spot Ether ETFs in the United States and Hong Kong. Ethereum price closed the past two weeks on a bearish outlook, which could trickle down to this week. Furthermore, Bitcoin (BTC) price slipped below $70K on Monday after experiencing major resistance of around $72K.
The entire altcoin industry opened this week with a bearish outlook amid high-impact news from the United States. On Wednesday this week, the United States Federal Reserve will release its highly anticipated funds rate.
While market economists anticipate a hold on Federal Reserve rates, the European Central Bank (ECB) has already initiated its rate cuts from 4 percent to 3.75 percent. Additionally, the Bank of Canada initiated interest rate cuts, thus adding pressure on the Federal Reserve to follow the same direction.
The United States Bureau of Labor Statistics will also release crucial data on the Consumer Price Index (CPI) on Wednesday. Cumulatively, the high-impact news will significantly impact the crypto industry with increased volatility.
Ethereum Whales on the Move
According to on-chain data analysis provided by Glassnode, Ethereum addresses holding at least 10,000 Ether units increased by about 3 percent in the last three weeks. Already, Ethereum supply on centralized exchanges is at an eight-year low, which is an indication that long-term buyers are relentlessly accumulating the altcoin.
The number of #Ethereum addresses holding 10,000+ $ETH has increased by 3% in the last three weeks, signaling an important spike in buying pressure! pic.twitter.com/7qq5HgGP37
— Ali (@ali_charts) June 9, 2024
The Ethereum supply-demand shock will further tighten after the listing of the approved spot Ether ETFs in the United States. Already, BlackRock has announced a $10 million seed for its spot Ether ETF, which is significantly higher than its seed for the spot BTC ETF.
Ethereum buyers are betting on an inevitable rally in the coming months, especially based on the four-year crypto bull cycle that was recently marked by the Bitcoin halving. Additionally, the Ethereum network has been preparing for mass Web3 adoption through several updates to reduce network fees and increase its throughput.
Midterm Ether Target
Ethereum price has closely mirrored that of Bitcoin in the past, apart from a few instances. According to a popular crypto analyst alias Crypto Patel on different social media platforms, Ethereum’s price against the US dollar must defend the support level of around $3,650 to invalidate further correction towards $3,152.
#Ethereum Chart Analysis#ETHUSDT is currently trading within a bull flag/parallel channel. We're waiting for a breakout before entering any trades.
🔻 Bearish Scenario:
If $ETH breaks down below the support level at $3650, we might see a decline toward $3152, which is the last… pic.twitter.com/p5SegetPtg— Crypto Patel (@CryptoPatel) June 10, 2024
In case Ether price against the US dollar fails to hold onto the support level around $3,650 and drops to $3,150, Crypto Patel highlighted that the altcoin will pump beyond $4k towards midterm targets of between $6k and $7k.
Ultimately, Ether’s price will go parabolic in the coming quarters fueled by heightened network adoption. As of this report, the Ethereum network had a total value locked of over $64 billion and a stablecoins market cap of about $80 billion.
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