Ethereum

Alphabet

Wednesday

April

The post <a href="https://coinpedia.org/news/why-ethereum-price-is-down-today-analyzing-eth-price-correction-post-etf-launch/">Why Ethereum Price is Down Today? Analyzing ETH Price Correction Post-ETF Launch</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a> 
Ethereum (<a href="https://markets.coinpedia.org/ethereum/" target="_blank" rel="noreferrer noopener">ETH</a>) dropped 1.8% on Wednesday despite the <a href="https://coinpedia.org/news/ethereum-etf-news-will-spot-eth-etfs-outperform-bitcoin-etfs/" target="_blank" rel="noreferrer noopener">successful launch of ETH ETFs</a>, which attracted <a href="https://coinpedia.org/news/ethereum-etfs-debut-with-record-1-billion-trading-volume/" target="_blank" rel="noreferrer noopener">$10.2 billion in assets</a> and saw net inflows of $107 million. The second-largest cryptocurrency by market cap is struggling, breaking below important support levels. The question arises: Is Ethereum poised to retest the critical $3,000 support level by the end of July? 
<h2 class="wp-block-heading" id="h-historically-a-drop-before-a-rise-nbsp">Historically- a Drop Before a Rise&nbsp;</h2> 
As per the 10X research <a href="https://mail.10xresearch.co/p/will-ethereum-drop-3000-essential-tips-traders" target="_blank" rel="noreferrer noopener nofollow">report</a>, the initial excitement surrounding the Ethereum ETF launch has dissipated, leading to what historically becomes a “sell-the-news” scenario. This trend has been observed during similar events in December 2017, April 2021, October 2021, January 2024, and now July 2024. This pattern often suggests that after the launch hype, a market correction follows. 
<h2 class="wp-block-heading" id="h-what-s-causing-this-sell-pressure-nbsp">What’s Causing this Sell Pressure?&nbsp;</h2> 
The report further highlights the wrong timing of the ETF launch, which coincided with the distribution of Bitcoin from <a href="https://app.coinpedia.org/company/mtgox" target="_blank" class="profile-details">Mt. Gox</a> <img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/10122626/info_icon.svg" alt="information" class="info-icons"> <a href="https://app.coinpedia.org/company/mtgox" target="_blank"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/09190601/link.svg" alt="link"></a> <a href="https://www.mtgox.com" target="_blank" rel="nofollow noopener"> <img decoding="async" src="https://image.coinpedia.org/app_uploads/profile/company.png" class="company_logo_img" alt="profile company logo" title="profile company logo"></a> Mt. Gox Centralised Exchange <a href="https://www.mtgox.com" target="_blank" rel="nofollow noopener"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/10161442/globe.svg" alt="globe icon" title="globe icon"></a> adding extra selling pressure to the crypto market. Plus, the US tech earnings season has started poorly, with significant sell-offs from companies like Alphabet and Tesla. With 40% of the market capitalization set to report next week, a conservative outlook due to weakened consumer spending could further impact the market. 
Moreover, Ethereum appears particularly vulnerable under current market conditions. Its fundamentals, including new user growth and revenue, have stagnated. Before the ETF launch, 10X Research highlighted Ethereum as overbought, suggesting it was ripe for a short trade—a view supported by a 6% decline since the report. 
<h2 class="wp-block-heading" id="h-gear-up-for-a-short-term-haul">Gear up for a Short-term Haul</h2> 
As of Wednesday, Ethereum trades around $3,420, down 1.8% for the day. Coinglass <a href="https://www.coinglass.com/eth-etf" target="_blank" rel="noreferrer noopener nofollow">data </a>shows $14.15 million in 24-hour liquidations, with a bearish sentiment prevailing as indicated by the ETH Long/Short Ratio dropping to 0.91. Similar to Bitcoin’s behavior post-launch, Ethereum may experience a brief decline before a potential rebound. Currently, the RSI level is hovering below the midline, suggesting that bears have an advantage in controlling the current trend. 
Technical indicators reveal a possible decline toward the $3,203 support level before a potential rise to $3,731 resistance.&nbsp; 
<h2 class="wp-block-heading" id="h-on-a-thin-ice-eth-s-may-drop-to-3k-nbsp">On a Thin Ice! ETH’s May Drop to $3K?&nbsp;</h2> 
Ethereum might test resistance at $3,400 if the market regains momentum, potentially aiming for $3,730 in the coming weeks. Conversely, if bearish trends continue, Ethereum could drop toward its crucial support level of $3,000 within this month.&nbsp; 
Advice for Investors 
In short, analysts suggest buying Bitcoin and selling Ether to the ETH traders. You can sell Ether options to pay for Bitcoin options. This strategy takes advantage of the current market situation, focusing on Bitcoin’s potential rise and protecting against Ether’s volatility. 
Also Check Out : <a href="https://coinpedia.org/price-analysis/ethereum-price-stays-quiet-amid-107-million-net-inflow-and-rising-bitcoin-volatility-whats-next-for-eth-price/" target="_blank" rel="noreferrer noopener">Ethereum Price Stays Quiet Amid $107 Million Net Inflow And Rising Bitcoin Volatility: What’s Next For ETH Price?</a>

Why Ethereum Price is Down Today? Analyzing ETH Price Correction Post-ETF Launch

Table of Contents

CoinPedia News

Other articles published on Jul 25, 2024

India’s New Crypto Policy: Cryptocurrency Policy Discussion Paper by September

Galaxy Asset Management Raises $113 Million for New Crypto Venture

Russia Eyes Crypto Payments to Tackle Trade Delays

Kintsu Secures $4M in Seed Funding Led by Castle Island Ventures to Catalyze Monad DeFi with Liqu...

Coinbase Fined $4.5 Million by UK Regulator for Breach

Mt. Gox Users Report Surge in Unauthorized Login Attempts

Join our free newsletter for daily crypto updates!