Ethereum’s ETH takes a breather after an impulsive candle linked to the SEC’s first green light for U.S. spot Ether ETFs. He is now digesting the news in a consolidation that could last several weeks. What levels should we watch for on the Ethereum cryptocurrency?
It is Tuesday June 11, 2024 and the price of ETH is around $3,600.
The announcement of the launch of Ethereum Spot ETFs by the Securities and Exchanges Commission (SEC) is taking time to materialize. The main reason seems to be the lack of preparation of the American financial policeman in the face of an approval which could have been motivated by the political debate around the elections.
Although the first green light has been given, responses to the S-1 forms filed at the end of May are slow in arriving. This step is the last before putting this financial vehicle into production. According to Bloomberg experts, these administrative procedures could be finalized at the beginning of July.
The debate is open as to the impact of this event on the market: is it already taken into account in the price action? This question will probably only be answered when Ether-based ETFs are launched. While waiting for this event, let’s return to the technical levels to watch around ETH.
Cryptoast Research: Don’t waste this bull run, surround yourself with expertsHealthy Consolidation in a Bullish Construction for Ether
| Pairs with Ethereum | 24 hours | 7 days | 1 month |
| Ethereum/USDT | -0.20% | -7.40% | +18.30% |
| Ethereum/Bitcoin | -0.30% | -2.70% | +10.20% |
👉 Read on the same subject – How to easily buy Ethereum (ETH) in 2024?
In our latest analyses, we highlighted the configuration in “ no bullish crossover » formed by the 7 and 20 week moving averages.
This realignment of dynamic supports is very relevant for bullish continuation while setting interesting benchmarks. To avoid any degradation, these 2 moving averages must maintain their alignment by avoiding crossing each other. This state of affairs does not exclude erratic movements below the supports, but these must remain fleeting.
We can already note the good price reaction on the 7-week moving average in the pre-CPI consolidation that we have been experiencing since Monday. Moreover, the publication date of this macro data is scheduled for today at 2:30 p.m., encouraging decision-making by market players. Today’s session could also continue to be eventful.
Buy cryptos on eToroWe see that Ethereum crypto has clearly emerged from its secondary bearish trend, nevertheless it fails to achieve a new high point in 2024, not yet validating a resumption of the medium-term trend. It consolidates into a symmetrical triangle bounded by the top of the 2024 highs and the top of the primary trend channel.
The equilibrium of this figure coincides perfectly with that of the monthly candle for May. This level is very important since it polarizes the price action in this compression. Above $3,400, we remain bullish. Below, the configuration deteriorates.
To restart with confidence on the rise, we will need to cross the yellow dotted line with strength and volume in search of new highs. However, let us keep in mind that excesses could, without calling into question the trend, briefly revisit the zone of 2,800 to 3,200 dollars.
If we reach these levels, the reaction will have to be strong to quickly regain the $3,400 closing level.
Weekly ETH price chart
Join the Cryptoast community on DiscordRunning out of steam, or breathing for ETH against Bitcoin?
Since October 2022, the same scenario has repeated itself irremediably: Ethereum suddenly regains strength before running out of steam without being able to validate the crossing of a downward trend line which has blocked it for 21 months.
The deviation below the support is the most plausible scenario, but it must still be confirmed by definitively freeing itself from this bearish oblique resistance. We are also waiting for an RSI which could cross 50 in order to settle in a zone of positive polarity.
While waiting for this confirmation, the low points of May 2024 constitute the level to be saved in order to maintain this positive scenario for the outperformance of Ethereum against Bitcoin.
Where applicable, the areas to be revisited are the historical levels shown in the graph below:
- Closing January 2021;
- Pivot bullrun 2021.
Weekly price chart of Ethereum against BTC
Cryptoast Research: Don’t waste this bull run, surround yourself with expertsIn summary, Ethereum ETH is well entrenched in its uptrend. He nevertheless seems to be constructing a large symmetrical triangle, a compression in which he could wander while waiting for a catalyst allowing him to extricate himself. The market pivot is at $3,400, an area of interest to watch carefully!
So, do you think ETH can outperform the crypto market again? Don’t hesitate to give us your opinion in the comments.
Have a nice day and we’ll see you next week for a new technical analysis of altcoins.
Sources: TradingView, Coinglass, Glassnode
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Analyst at Cryptoast Research for several years, I carry out in-depth monitoring of the crypto market to analyze the next narratives while keeping an eye on the financial markets.
Emmanuel Lazaro
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