Ethereum (ETH) has seen significant price volatility recently as expectations for the approval of a spot Ethereum ETF in the United States have increased. This positive news has pushed ETH prices up 28% in a week, hitting their highest level since mid-March. Although prices fell to around $3,700, key indicators suggest that this decline is short-lived and Ethereum is expected to continue to rise.
Bullish traders face liquidation
One of the strongest indicators of Ethereum’s future price growth potential is the rise in open interest and trading volume for ETH futures. Data shows that ETH’s open interest has risen 4.3% over the past 24 hours and currently stands at $16.4 billion. In addition, trading volume has risen by more than 14%, soaring to $60 billion.
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However, the recent sharp decline in the cryptocurrency market has consolidated bearish positions around the $4,000 mark. Bitcoin (BTC) fell from around $70,000 to below $68,000 in early U.S. trading hours, while the price of Ethereum (ETH) fell to around $3,700 after climbing to its highest level since mid-March at over $3,900 early Thursday. According to Coinglass, total liquidations exceeded $110 million, with long positions facing liquidation approaching $90 million.
The drop was likely triggered by a large ETH sell order from trading firm Symbolic Capital Partner. Blockchain data showed that the firm sold 6,968 ETH worth $27.4 million in one minute. In addition, 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 a portfolio, or assess trends. This is part of a larger pattern where more ETH is being deposited on exchanges, indicating increased trading volume and potential market instability. This could strengthen resistance to Ethereum prices, potentially triggering more frequent, large-scale sell-offs.
Where will ETH price go next?
The price of Ether (ETH) recently approached the $3,950 mark, reflecting a clear uptrend. However, the bears strongly defended this level, resulting in a drop to $37,000. Despite the strong rejection, the bulls are in control and plan to retest the psychological $4,000 mark. As of this writing, Ether is trading at $3,802, up 1.3% in the past 24 hours.
Ahead of the ETF decision, bulls are poised to challenge the $4,100 resistance level. Positive news could see prices surge later. A breakout could signal a shift in the long-term market trend, potentially pushing the ETH/USDT pair towards the $5,000 level.
On the other hand, for the bears to regain control of the market, they will have to push the price below the 20-day EMA and break the critical $3,600 support. Such a move could result in a drop to $3,350. However, the probability of a downtrend is low at the moment due to the growing hopes of the SEC approving an ETH ETF.
