ETH/BTC Price Prediction: Is Ethereum Price Reversing or Is It a Bull Trap?

07/09/2024 12:42

Ethereum is among the biggest gainers today, as the vast majority of the market recovers. While Bitcoin trails ETH in gains, it also looks promising as it holds above the $55,000 support level.

Ethereum price increased by 5.6% in the last 24 hours to trade at around $3,070 during European business hours. The increase comes against the backdrop of Germany’s continued Bitcoin sell-off. BTC also saw an increase of 3.4% over the last 24 hours, and is trading at $57,189.

Ethereum Price To Rebound If This Happens

ETH price broke below a falling channel on Thursday last week, a non-bullish move on its part. Ethereum price plummeted to a low of $2,811 as Bitcoin continued to bleed. However, ETH price found another support below around $2,815, using it as a cushion against the fall. The price of ETH consolidated around this local bottom over the weekend before showing some renewed strength on Monday going into Tuesday.

The Ethereum price action has revisited the 200-day simple moving average (SMA), which is currently acting as a resistance. If Ethereum breaks above this key indicator, market sentiment may turn to bullish.

Ethereum price prediction shows the asset may likely break above the 200-day SMA but succumb to the overhead 50-day SMA, falling into a consolidation zone between $3,371 and $2,811. This will also put it back into the falling channel.

If ETH bulls can exert more power, they can break above the falling channel and the potential consolidation zone to hit the previous yearly high of $3,967. On the flip side, if the bears prevail, ETH price may break below the $2,815 support and drop lower to $2,200, with temporary cushioning around $2,490.

On the other hand, Bitcoin price hit a low of $53,550 in the recent sell-off (which may still be in play) before bouncing back, as data from CoinGecko shows. The asset seems to have found support around the $55,000 level, though history suggests this may not hold for long. If BTC continues to fall, the next major support is around $50,000, and below that, $46,000.

Why is Ethereum Price Rising?

The markets today have spots of green, with Ethereum among the biggest gainers. VanEck was the last to file an S-1 for its spot Ethereum ETF yesterday, indicating a high likelihood of ETF approval soon. As of July 9, 2024, all spot Ethereum ETF applicants have filed their updated S-1s.

Meanwhile, while Germany continues to sell Bitcoin indiscriminately, ETFs saw $384 million in inflows last week, showing that investors are using the fear in the market to get exposed to BTC at discounted prices.

Bottom Line

Ethereum’s price movement shows signs of a potential reversal, but uncertainty lingers as market participants debate whether this uptick represents a genuine trend change or a deceptive bull trap. Close monitoring of key indicators may provide clarity on whether ETH can sustain its momentum relative to BTC in the coming days.

Frequently Asked Questions (FAQs)

Grayscale, VanEck Fidelity, 21Shares, Franklin Templeton, BlackRock, and Bitwise have all submitted filings for a spot Ethereum ETF.

Speculations say that Ethereum ETF will launch mid-July.

According to analysis, after the launch of a spot Ethereum ETF, ETH could rally to $6,600.

About author
Disclaimer

Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.