Ethereum price has seen a significant 14% increase over the past seven days, reaching the $3,200 mark on July 11. On-chain data trends indicate that ETH retail traders may continue to drive demand in the coming days. The positive momentum in the crypto market was initially sparked by the US Bureau of Labour Statistics’ Consumer Price Index (CPI) report, which showed a slowdown in inflation and renewed calls for interest rate cuts.
Ethereum’s price surged by over 4% on Thursday, reaching a weekly high of $3,213, following the positive CPI report. The impending launch of an Ethereum ETF scheduled for July 15, as reported by Bloomberg analysts, further fueled the price surge. Despite a slight retracement to around $3,100 on Friday, July 12, the on-chain data indicates that retail traders are gearing up to increase demand for Ethereum as the ETF launch date approaches.
The exchange order book data from IntoTheBlock reveals that there is currently higher market demand for Ethereum, with 68,000 ETH in excess demand compared to the supply available. This imbalance suggests that there could be a potential price bounce as demand outpaces supply. With the launch of Ethereum spot ETFs just around the corner, existing investors may choose to hold onto their assets, while short-term traders could be waiting to capitalize on the expected market excitement.
As the sell-side pressure eases due to the dovish CPI report and the upcoming ETF launch, Ethereum’s price could be on the cusp of a parabolic breakout towards $3,500. Technical indicators point towards a bullish outlook for ETH, with the price currently trading at $3,092.12 on July 12. The Parabolic SAR indicator signals a possible upward momentum towards breaking key resistance levels, with $3,500 being a significant psychological and technical barrier.
In terms of support levels, traders should keep an eye on $3,000 as a strong psychological support, followed by $2,800 in case of a pullback. Breaking above the resistance level at $3,256.23 could pave the way for a retest of $3,500, while maintaining the $3,000 support is crucial for sustaining the bullish momentum. The Relative Strength Index (RSI) at 39.20 suggests that ETH is still in oversold territory but showing signs of recovery, further confirming the bullish outlook for Ethereum’s price.
In conclusion, Ethereum’s price action and technical indicators point towards a bullish trend with a target of $3,500. Traders should monitor key resistance and support levels to gauge the momentum of ETH’s price movement. Breaking above resistance and maintaining support could see Ethereum reaching new highs in the near future.
