Ethereum (ETH) saw significant price volatility recently, due to increased anticipation of spot Ethereum ETFs approval in the U.S. This positive news drove a 28% increase in ETH’s price in a week, achieving highs last seen in mid-March. Although the price briefly dipped to approximately $3,700, key indicators suggest this decline is short-lived, with expectations for Ethereum to continue its upward trajectory.
Bullish Traders Face Liquidations
One of the most compelling indicators of Ethereum’s potential for future price growth is the rising open interest in ETH futures and trading volume. Data suggests that ETH’s open recorded a 4.3% gain in the last 24 hours, currently at $16.4 billion. Additionally, the trading recorded over 14% gain, surging to $60 billion.
Read more: Gensler Teases Upcoming SEC Decision on Ethereum ETFs: Here’s What To Expect
However, the recent steep decline in the crypto market solidified bearish positions near the $4K milestone. During the early U.S. trading session, Bitcoin (BTC) fell from approximately $70,000 to below $68,000, while the price of Ethereum (ETH), having climbed to its highest level since mid-March at over $3,900 early Thursday, dropped to around $3,700. According to Coinglass, total liquidations exceeded $110 million, with long positions facing liquidations close to $90 million.
The decline could have been triggered by a large ETH sell order from trading firm Symbolic Capital Partner. Blockchain data showed the firm sold 6,968 ETH worth $27.4 million within a minute. Additionally, several whales have become active as their selling pressure continues to increase.
Ethereum co-founder Jeffrey Wilke moved 10,000 ETH ($37.4 million) to Kraken, possibly to take profits, rebalance his portfolio, or evaluate the trend. This is part of a larger pattern where more ETH is being deposited into exchanges, suggesting a rise in trading and potential market instability. This might strengthen the resistance for Ethereum price, which might trigger more frequent large selloffs.
What’s Next For ETH Price?
Ether’s price recently neared the $3,950 mark, reflecting a significant upward trend. However, bears strongly defended this level, resulting in a decline toward $3.7K. Despite strong rejection, bulls took control and are aiming for a retest of the psychological mark of $4K. At the time of this report, Ether is trading at $3,802, marking a 1.3% increase in the past 24 hours.
The bulls are poised to challenge the $4,100 resistance level ahead of the ETF decision. A positive news might skyrocket the price later. A breakthrough could signal a shift in the long-term market trend, potentially sending the ETH/USDT pair toward the $5,000 level.
On the other hand, for the bears to regain market control, they must drive the price below the 20-day EMA and breach the critical $3,600 support level. Such a move could trigger a fall to $3,350. However, the likelihood of a downward trend is currently lower due to increasing hope that the SEC will approve the ETH ETF.
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