Ethereum

Ethereum on the rise, 2 million addresses will be in the money if the $3,200 threshold is exceeded

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Ethereum, mirroring the performance of Bitcoin and other top altcoins, is back above $3,000, days after falling below $2,800. As the second-most valuable currency recovers, injecting optimism among token holders and struggling traders, a close above $3,200 will be crucial to catalyze demand.

Ethereum Rising: Will Bulls Surge Above $3,200?

According to IntoTheBlock on July 10, if Ethereum edges above The $3,200 level will be a massive development for traders. When it happens, approximately two million entities that traded ETH at this price level will be in the money.

About 2 million traders will be in the green if ETH breaks above $3,200 | Source: @intotheblock via X

Therefore, if prices test this level again, those who have invested for the long term can exit at breakeven. Conversely, other “diamond hands”, who expect further gains on the horizon, can double their stake and profit from the expected rise.

So far, there are signs of strength. However, while sellers are still in control, a break above $3,300 will be crucial in the short to medium term. The $3,300 level, looking at the ETHUSDT candlestick pattern on the daily chart, was a previous support, but it is now a resistance.

Ethereum price is moving sideways on the daily chart | Source: ETHUSDT on Binance, TradingView

A breakout, ideally with increasing volume, will likely provide a basis for further gains, lifting the coin towards a key liquidation level at $3,700 and then $3,900.

Conversely, if sellers take over, reversing recent gains and matching losses from July 4-5, a drop below $2,800 will signal a continuation of the trend. Looking at the candlestick patterns, Ethereum will hit new multi-week lows in this event, even dropping to $2,500.

Eyes on Spot ETFs, Whales Accumulate as ETH Dries Up

Overall, analysts are bullish and expect Ethereum to float higher. The planned launch of Ethereum spot exchange-traded funds (AND F) in the coming days is an important catalyst behind this bullish outlook.

Much like how Bitcoin ETFs opened the floodgates of institutional exposure to the world’s most valuable currency, the same influx will likely be seen in ETH. With institutional demand, proponents believe ETH will surge, breaching the $4,100 mark and recording new 2024 highs in the coming months.

Interestingly, even the expectations surrounding the launch of the Ethereum ETF do not seem to change traders’ outlook. On-chain data reveals that bullish sentiment is at an all-time high. lowest for a yearwhich underlines the caution of ETH holders.

ETH traders are pessimistic | Source: @QuintenFrancois via X

Meanwhile, as data on the chain illustratedETH outflows from exchanges have been increasing recently. All exchanges, including Binance and Coinbase, control 10.17% of ETH in circulation. Parallel data also watch that another chunk, representing 28% of all ETH in circulation, is staked.

Main image of DALLE, chart from TradingView

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