3 Key Factors Keeping Ether Bullish at $3,500
Ether (ETH) experienced a significant drop to $3,363 on June 16, declining by 15% from its previous value of $4,000. Presently, the second-largest cryptocurrency by market capitalization has decreased by 4% over the past week. Data from Markets Pro and TradingView shows Ether’s price stabilizing around $3,518, which is approximately 14% lower than its multi-year peak of $4,091 reached on March 12. Accompanying this downward trend is a notable increase of 43% in daily trading volume, currently amounting to $14 billion, underscoring heightened sell-side activity.
Amid this seemingly bleak scenario, Ether appears to have found a support level at $3,500. Various technical metrics and on-chain data suggest potential for an upward movement in Ether’s price. One key factor boosting Ether’s outlook is the decreasing supply of ETH on exchanges. According to on-chain data provider CryptoQuant, Ethereum balances on exchanges have hit a five-year low of 16.7 million ETH, following a 9.3% decline over the last 90 days.
The balance between inflows and outflows among centralized exchange wallets has shown a significant drop from May 20 to June 14, coinciding with an increase in withdrawals from trading platforms. Interestingly, this period also saw a 14% uptick in Ether’s price. The decreasing supply on exchanges suggests that investors are moving their tokens to self-custody wallets, indicating a reluctance to sell and a potential anticipation of future price gains. This trend is further explained by a recent spike in accumulation by large holders.
Additional data from market intelligence firm Santiment reveals an increase in wallets holding between 10,000 and 100,000 ETH since May 25. Notably, on June 16, popular trader Ali Martinez shared a chart from Santiment highlighting that Ethereum whales had bought over 700,000 ETH in the past three weeks, totaling approximately $2.45 billion. This indicates that these large holders have not sold during the latest rally up to $4,000, which was driven by the approval of spot Ethereum exchange-traded funds (ETFs) in the United States.
Instead of selling, these whales have continued accumulating ETH, suggesting that they are positioning themselves for further price increases. There has been a significant rise in ETH futures open interest (OI). According to data from Coinglass, ETH futures OI increased from $15.06 billion on June 14 to approximately $16.15 billion at present. This marks a nearly 36% jump in less than 30 days, indicating heightened demand for leveraged positions in ETH.
The latest decline in ETH’s price has also preceded a period of bullish divergence between its price and the relative strength index (RSI) on the four-hour time frame. While Ether’s price dropped between June 10 and June 14, its daily RSI climbed, forming higher lows. According to technical analysis, this bullish divergence between falling price and rising RSI indicates a weakening downtrend, prompting traders to take advantage of local lows.
The recent approval of spot Ethereum ETF applications by the United States Securities and Exchange Commission (SEC) on May 23 led to a price rally of over 12%, bringing ETH close to $4,000. Prior to this approval, the price had jumped 33% in under a week due to anticipation. Market participants are currently eagerly awaiting the launch of these spot Ethereum ETFs, with some analysts predicting July 2 as the possible start date.
For instance, Bloomberg Senior ETF analyst Eric Balchunas has indicated that spot Ether ETFs could potentially begin trading in the U.S. by July 2. Balchunas’s comments signal a shift in confidence from his previous stance, where he was less certain about the timing of the SEC’s approval. On May 23, the SEC approved eight 19b-4 filings to list spot Ether ETFs on various U.S. exchanges, but the trading could only commence once the required S-1 registration statement approvals were in place.
As market participants anticipate the imminent launch of spot Ether ETFs, there is widespread expectation that Ether’s price will see a significant rise in the days leading up to and following the debut of these ETFs. This anticipation adds to the growing bullish sentiment surrounding Ether’s future price movement.
39 thoughts on “3 Key Factors Keeping Ether Bullish at $3,500”
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Every time we hope for a rebound, something happens, and the price tanks again. This is driving me crazy.
Great read! The market metrics point towards a recovery!
Sick of these declines. ETH’s performance has been nothing but a disappointment lately. 😑
Appears there’s a strong bullish sentiment building! Bring it on! 📈🏋️♂️
Price stabilization at $3,500 is reassuring!
Despite the dip, everything else seems to be in place for a rally! 👍🌊
The increasing trading volume only underscores the panic selling. I dont see any reason to stay optimistic.
Exciting times ahead for Ethereum! Seeing whales accumulate is a bullish sign. 🐋💪
Decreasing supply on exchanges is a solid indicator!
The 14% drop from its peak is concerning. Despite all the hype, ETH’s price stability seems like a distant dream.
I don’t believe in these technical metrics anymore. Every time they promise a rebound, we end up losing more.
Excited to see how these large holders influence the next move! 🚀📈
Don’t get swayed by all this technical analysis jargon. The market sentiment seems really bearish to me. 🙅♂️
The significant increase in ETH futures open interest is a great indicator!
Feeling optimistic about Ethers outlook, holding strong!
Interesting insights on the ETH market pullback and future recovery. 🧐💹
Loving the positive trend analysis! The long-term outlook looks great.
Spot Ether ETFs may boost ETH to new levels! So exciting!
Fantastic analysis – the support level at $3,500 offers hope! 💰⚡
With these ETFs launching soon, ETH might hit new highs!
The bullish divergence gives me more confidence in ETHs recovery.
Future is looking bright for ETH with ETFs coming! 💡🌠
The recent bullish divergence is exactly what we needed to hear!
The market is setting up perfectly for ETH!
ETH hitting $4,000 soon? I cant wait!
Decreasing supply on exchanges makes me optimistic about Ether’s future!
I’ve lost a significant amount. The market reactions are just too unpredictable for me. Its nerve-wracking.
Ethereum’s resilience continues to shine through. 🌐💥
Why do people still have faith in this coin? It seems like we are always discussing potential gains rather than seeing actual growth.
Accumulation by whales is always a good sign!
Amazing insight into ETH! Looks like there’s strong potential for an upward trend.
Honestly, I’m getting tired of these constant drops in ETH’s price. It feels like we’re always on a rollercoaster, but without any thrill.
Promising predictions don’t help when I’ve already lost so much money. Just give me stability for once!
Ether’s future looks promising with these technical metrics! 🔗🔥
The hype around ETH futures and ETFs is just masking the real issue: the price is still dropping!
Waiting for that ‘potential upward movement’ feels like wishful thinking at this point. We’ve been hearing the same story for months!
Cant wait for the ETF launch, ETH to the moon!
Whales buying up ETH is super bullish! Holding strong! 🐋💎
These price drops are killing my trust in ETH’s long-term potential. It’s hard to stay positive with constant bad news. 😔