Stats from the on-chain show that the price level of $3,500 is a strong support for Ethereum. The price of the coin has been below this point for a few days now.
IntoTheBlock shared data on Monday that showed Ethereum has had a hard time breaking through the $3,500 mark since July 16. Right now, the price of ETH is around $3,448, down 1.8% in the last 24 hours since it hit an all-time high above $3,560.
The main thing that is making this reaction stronger is the large number of Ethereum addresses that bought the cryptocurrency at this price or higher. According to IntoTheBlock, 3.13 million addresses bought more than 1.5 million ETH for an average of $3,547 each. These addresses, which are currently losing money, are adding to the selling pressure, which is making it hard for Ethereum to go above this important level.
Market Optimism Balances Resistance
Even with this pushback, the crypto market as a whole is still optimistic. Notably, 84% of people who keep ETH are currently making money, while only 11% are losing money. The momentum measure for the futures market, on the other hand, shows a value of -0.5, which means it is more bearish.
The market is also feeling good because spot ETH ETFs are about to be released. Experts think that these ETFs could go public as early as July 23 after sponsors filed their final S-1 registration statements last week. These statements include information like fees.
Not all analysts concur on the short-term outlook for Ethereum. A well-known crypto analyst, Rekt Capital, pointed out a macrobull flag pattern for Ethereum. In other words, ETH could reach $4,000 soon if the current upward trend keeps going. Also, on July 21, crypto expert Moon Carl pointed out a bullish inverse head-and-shoulders pattern and said that ETH could go after $4,300 if it materialized.
If you want to sell Ethereum, the next level of support is between $3,449 and $3,390. This level is a strong wall that stops more drops.
