- 1 The Ethereum coin price dragged toward the 20-day EMA support mark.
- 2 The market sentiment turned bearish in the past trading sessions.
The second largest cryptocurrency by market cap, Ethereum (ETH), witnessed a slight decline and retested its key support zone of $3700. The broader crypto space has faced selling pressure in the last few hours, and primarily, altcoins are traded in the red, directing bearish sentiments.
After declaring higher-than-expected U.S. jobs data, the bear cartel re-entered the battle and pushed the broader index from the top. Trading in the upward trajectory, ETH bulls are likely to come back this weekend and may defy the selloff soon.
Despite the increased volatility, the Ethereum price is above its key moving averages and has been trading in a closed range of $3550-3900 for the past weeks.
An impulsive move can be anticipated once it breaks out of the range. Still, buyers have persisted in accumulation and are eyeing for a breakout rally ahead.
At press time, the Ethereum price traded at $3688 with an intraday surge of 0.012%, reflecting flat moves on the chart. It has a monthly return ratio of 21.20% and 100.20 yearly, reflecting a short-term uptrend on the charts.
Notably, ETH has a market cap of $450.19 Billion. Analysts are bullish and guide that a sharp bull run can be seen ahead once the ETH price crosses the $4000 mark.
Could Ethereum Cross the $4000 Mark this Month?
Amidst the price turnaround this week, the short-term trend is intact, and buyers are decisively holding gains. Despite the flat intraday movements, Ethereum price action still favors a rise and might cross its round mark hurdle of $4000 this month.
Moreover, the trend is still bullish, and ETH is in an upward trajectory. Buyers will continue to dominate above the $3550 mark and are eyeing higher levels.
Meanwhile, the trading volume witnessed a minimal decline in the past sessions, revealing a decrease of over 55% to $7.68 Billion.
Source: TradingView
Amidst the price decline of over 5% in the last 48 hours, the technical indicators are pivoting to neutrality and still favor bullishness. The Relative Strength Index (RSI) stays in the overbought zone, but a negative crossover was noted on the chart.
Per the Fibonacci retracement levels, Ethereum is holding on to gains beyond its 61.8% support zone and is beyond the mid-Bollinger Band.
If Ethereum bulls succeed in holding the $3700 mark, $4000 could be hit next week. Crypto trader @ApeChartz tweeted that he expected ETH to retain the $3800 mark.
Notably, ETH price took support on the 20-day EMA mark and made a rejection wick, implying that buyers are still in the game and may resist selloff soon,
$ETH
— ApeChartz (@ApeChartz) June 9, 2024
Longed the 4hr divergence
Think the wick holds and we start to push up above 3800s
Weekend so not expecting much volatility but starting to build the position here
Hope everyone has a good weekend pic.twitter.com/cG9uPQGloA
Source: X
Lark Davis highlighted that ETH supply on exchanges is at an 8-year low.
Ethereum ETFs are about to cause a massive supply shock. As a result, ETH price could skyrocket soon.
$ETH supply on exchanges is at an 8-year low.
— Lark Davis (@TheCryptoLark) June 8, 2024
Ethereum ETFs are about to cause a massive supply shock.
As a result, the price of $ETH could skyrocket.
Are you prepared? pic.twitter.com/dVe9t3SIXw
Source:X
Notably, after the Ether Spot ETF news, Ethereum price rallied by 25% in the last 20 trading sessions. Analysts expect Ethereum to rise over 5-10% shortly.
Surge In Daily Transactions
Source: Artemis
Over the last few trading sessions, the daily transaction activity noted an uptick and surged over 20% to $1.20 Million, implying an increase in trading activity.
Futures OI Data Outlook
After the Spot ETF news, the open interest bars increased significantly to a larger extent, highlighting investor speculation.
Source: Coinglass
The open interest value dropped over 1.26% to $16.38 Billion in the last 24 hrs, reflecting long unwinding data.
The immediate support levels for the Ethereum price are $3620 and $3500, whereas the key upside hurdle is around $3800, followed by $3980
Conclusion
Ethereum is close to its prompt support mark of $3700 and may see a rebound shortly. Investors are still guiding their positive sentiment and accumulating ETH on every dip, which means the upside is intact ahead.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
