The approval of the spot Ethereum ETF brought a surge of optimism to the cryptocurrency market, seemingly overpowering the pessimistic sentiment. However, despite the upward momentum, Ethereum (ETH) failed to break through the crucial $4,000 barrier, as the resistance level proved to be formidable.
As a result, the price of ETH experienced a 6% drop, accompanied by a significant decline in trading volume, which currently sits below average levels. This raises the question of whether ETH can regain its bullish trend and eventually reach $4,500.
As the month comes to a close, the market continues to display sluggish behavior, with minimal activity from both bulls and bears, resulting in limited price action.
The current ETH price is trading above the support zone, ranging between $3,657 and $3,706. However, there has been a decrease in both volume and volatility, signaling a temporary shift in favor of the bears. Technical indicators are also indicating a recommendation to sell.
The on-balance volume, which previously saw a surge, now shows signs of a bearish divergence. This suggests that negative pressure is gradually building up, potentially indicating a shift in the rally towards lower prices.
The aftermath of the spot ETH ETF approval has left the Ethereum market uncertain about its ability to maintain its bullish momentum. The failure to surpass the $4,000 resistance level, along with the subsequent 6% decline and reduced trading volume, has raised doubts about the sustainability of the current rally.
The slow market behavior and lack of significant price action from both bulls and bears have raised concerns about potential resistance at local support levels. However, the long-term price action still indicates a continuation of the bullish trend, although a pullback may be necessary to attract fresh liquidity.