Ethereum is holding steady as of writing, rising rapidly after falling to around $2,800 earlier this month. At the time of writing, the second-most valuable coin is up more than $24% and remains in an uptrend despite the scare on July 4 and 5.
Ethereum finds strong resistance at $3,500
Even though buyers expect ETH bulls to press and push the coin above $3,700, a key resistance line, on-chain data shows that there is resistance. According to IntoTheBlock data On July 22, ETH is facing strong resistance at $3,500, which has been the case since July 16.
At this level, 3.13 million unique addresses purchased ETH at an average price of $3,547. Therefore, if prices trend below this level, these holders are in the red and looking at a loss.
The fact that some addresses are willing to abandon the market and exit the market when prices fall makes the overall environment fragile, a considerable obstacle to the upside. This makes the situation even worse considering that ETH is not on the same footing despite the July 15 expansion.
On the daily chart, the uptrend remains, but there are pockets of weakness due to the sharpness of the declines on July 4 and 5. The sell-off forced ETH to reach the $2,800 level, reversing gains from May 20.
For buyers to take control, reaffirming the July 15 uptrend, prices must break above $3,500, but more importantly, $3,700. This reaction line is crucial and is the only local resistance that buyers must overcome for ETH to float above $3,900 and $4,100.
Millions of ETH withdrawn from exchanges, spot ETF launch spurring demand
For now, there is strength in the on-chain analysis reading. While over three million users are in the red, more ETH continues to be moved from exchanges.
As of July 19, data from IntoTheBlock revealed that $126 million worth of ETH was transferred from major exchanges. Notably, this development comes amid the expected approval of the first batch of spot Ethereum ETFs in the United States.
If the US Securities and Exchange Commission (SEC) gives the green light to these products this week, it would be a huge win for ETH.
The clarity that comes with this regulatory move will be important. U.S. SEC officials have yet to clarify the status of ETH.
However, since spot Ethereum ETFs are listed on several exchanges in the country, one would assume that the regulator agrees that the second most valuable coin is a commodity, just like Bitcoin.