Will the introduction of new ETFs help Ethereum (ETH) overcome the resistance at $3,900?
Key Takeaways
– Ethereum’s price is facing resistance at $3,900, but positive factors like ETF approval and investor interest could push it to new highs.
– The meme coin industry is booming, impacting the supply of Ethereum on exchanges.
– Ethereum’s price target is set between $4,328 and $4,590, with $3,525 as a strong support level.
Following the long-awaited approval of spot Ethereum ETFs in the US, Ethereum (ETH) has experienced a surge in price. However, it is currently facing a stubborn resistance level at $3,900 that is hindering further upward movement. With a fully diluted valuation of approximately $465 billion and a circulating supply of around 120 million, Ethereum is on the cusp of potentially retesting its all-time high.
Both institutional investors and retail traders are increasingly showing interest in the Ethereum ecosystem. The Ethereum network is renowned for its secure tokenization platform and scalable layer-two solutions, making it appealing to a wide range of users.
Meanwhile, as buyers of Ethereum struggle to push its price beyond $3,950, the meme coin market is flourishing. Leading coins such as Pepe (PEPE), Floki Inu (FLOKI), and Turbo (TURBO) have driven the meme coin market up by over 4% in the past 24 hours, reaching a total value of approximately $66 billion, with a daily trading volume close to $9 billion.
Interestingly, the rise of the meme coin market is impacting the supply of Ethereum on exchanges. Despite Ethereum’s supply on centralized exchanges being at a multi-year low, recent on-chain data from IntoTheBlock reveals that net inflow to these exchanges has reached its highest level since January. Over the weekend, there was a net inflow of 140.66k ETH, marking the highest net deposits in over four months. Typically, high inflows to exchanges indicate selling behavior, suggesting that some investors are cashing out.
From a technical analysis perspective, Ethereum’s price against the US dollar is now aiming for the next target zone between $4,328 and $4,590. This aligns with the daily 3.618 and 4.236 Fibonacci Extension levels. However, if Ethereum bulls fail to push the price beyond $4,000 in the coming weeks, the top altcoin is expected to find strong support around $3,525.
In conclusion, Ethereum’s price is currently facing resistance at $3,900, but with the approval of spot Ethereum ETFs and growing investor interest, it still has the potential to reach new highs. The meme coin industry’s surge is impacting Ethereum’s supply on exchanges, and technically, the price target for Ethereum is set between $4,328 and $4,590, with strong support at $3,525.