Ethereum Analyst: Bulls Must Hold $2,500, Spot ETF To Catalyze Demand
23 Agosto 2024 - 2:00AM
NEWSBTC
Ethereum, similar to most altcoins, is under significant selling
pressure, struggling to shake off the weakness of early August.
Even though there were flashes of strength after the climactic
sell-off on August 5, prices are still below $2,800. The only
positive for now, at least looking at the daily chart, is the
impressive bulls’ resilience. Despite the wave of lower lows,
buyers have soaked in the deluge of selling pressure, holding
prices above the $2,500 mark. The bearish formation, nonetheless,
remains, but one analyst thinks the rejection of lower prices below
$2,500 is critical. Ethereum Bulls Must Keep Prices Above $2,500 In
a post on X, the analyst said that bulls must hold Ethereum above
$2,500 for the uptrend to remain. The round number, looking at
price evolution in the daily chart, marks the base of the bull
flag. Related Reading: XRP Price Poised for Steady Rise: Can It
Maintain Its Uptrend? In the past few trading days since the spike
on August 8, Ethereum has been trending below the $2,700 and $2,800
resistance zones. At the same time, support remains clearly at
$2,500. As price action consolidates, a bull flag has formed,
signaling strength. According to the analyst, if buyers keep $2,500
as their anchor, Ethereum is set to fly, reaching $3,150 in the
next session. The recovery is welcomed, considering that the
sell-off of August 1 through 5 was a bearish breakout formation.
This sell-off breached the critical support zones of April to July
2024. Impact Of Spot ETFs and Ecosystem Growth The leg up, the
analyst added, would likely be driven by inflow into spot Ethereum
ETFs. Since approving spot ETFs in July, institutions have been
keen to find exposure. Taking to X, one ETF analyst notes that
inflows now exceed $2 billion, excluding the outflows from
Grayscale’s ETHE. During this period, BlackRock’s iShares Ethereum
ETF has been driving demand. Beyond the inflow from spot Ethereum
ETFs, Vitalik Buterin thinks there has been positive progress that
may prop up prices. Among these is the drop in gas fees in the
mainnet and via layer-2 solutions like Base. Related Reading:
September 10: A Bitcoin Game Changer, Says Hedge Fund Founder
Moreover, the co-founder noted that decentralization efforts by
Arbitrum and Optimism is massive. Arbitrum and Optimism recently
announced their fault-proofs. However, Optimism reverted to a
centralized fault-proof system after an audit report, allowing
flaws to be fixed. Feature image from DALLE, chart from TradingView
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