Is Ethereum (ETH) on the Verge of a Price Correction?

As the cryptocurrency market experiences a modest recovery from recent bearish trends, Ethereum (ETH), the largest-capped altcoin, saw a 2.75% increase in the past 48 hours, bringing its price to $3,477 shortly before it fell to $3439. 

In the midst of these market fluctuations, a significant Ethereum whale, who had been inactive for 209 days, moved 7,000 ETH, valued at $24.28 million, to the Kraken exchange. This whale has been involved in Ethereum since its Initial Coin Offering (ICO) in 2015. Despite this large transfer, the whale still retains 40,000 ETH, which is worth approximately $139.5 million. 

Further movements in the market were noted by Arkham Intelligence, which reported that the U.S. government transferred 3,375 ETH, valued at roughly $11.75 million, three hours prior to the report. The U.S. government’s total Ethereum holdings now stand at 50,524 ETH, worth around $175 million. This transfer coincided with the filing of Spot Ether ETF S-1 forms. The U.S. Securities and Exchange Commission (SEC) has returned these forms for further review and amendments, suggesting a refiling deadline of July 8. 

Can ETH Break the Upcoming Resistance? 

Over the past week, ETH has risen by 4.87%. However, this gain contrasts with an 8.41% decline over the past month. The daily relative strength index (RSI) is currently at 48.74, indicating that ETH is nearing a neutral zone in terms of market strength. 

An analysis of the 24-hour price chart suggests that if Ethereum embarks on a recovery wave, it could encounter significant resistance at the $3,695 mark. Should the bullish momentum continue, the next major resistance levels are anticipated between $3,730 and $3,796. A sustained upward trend might even push the price towards the $4,000 range. 

Conversely, if Ethereum fails to surpass the resistance zone, it could see a decline to immediate support around the $3,338 level. Should this support fail, the next support level appears to be at $3,284, with further losses potentially driving the price down to the $3,247 support zone. 

In conclusion, Ethereum’s price movement in the near future will largely depend on its ability to break through these critical resistance levels or, alternatively, on the resilience of its support zones.