Crypto: Ethereum Facing a Critical Resistance

As Ethereum is not far from the critical zone of $3,200, sell signals are multiplying among investors. This resistance, combined with expectations regarding the launch of an ETF on Ether, creates a tense and uncertain market climate. The current volatility could have major consequences for the future of the second-largest cryptocurrency.

Ethereum facing resistance at $3,200

Ethereum, the second-largest crypto by market capitalization, recently crossed the $3,000 mark, but it encounters major resistance at $3,200. This price barrier is critical, on-chain data shows that about 2 million addresses that bought Ethereum around this level are currently at a loss. These investors might choose to sell their cryptos to recover their initial investments, increasing the selling pressure on the market.

However, the imminent launch of an ETF (Exchange-Traded Product) on Ether could change the game. This event is likely to inject new capital into the market, counterbalancing the selling pressure and generating a positive momentum for prices. Despite everything, Ethereum struggles to break through the $3,200 resistance, illustrating the current fragility of its position.

Market sentiments and projections

Despite the optimism surrounding the launch of the ETF on Ether, the price of Ethereum remains unstable. Currently, ETH is oscillating around $3,100, with recent fluctuations indicating uncertainty among investors. Data from Coinglass shows a slight increase in Open Interest in ETH futures, reaching $12.67 billion, while the derivatives volume has dropped significantly. This combination highlights a sense of caution and expectation in the market.

The Relative Strength Index (RSI) of Ethereum, currently at 40, indicates that the asset is neither overbought nor oversold, marking a neutral position that could shift either way. The situation is worsened by large purchases, such as the recent acquisition of 16,000 ETH by a whale, showing that some investors are anticipating a rise due to the ETF.

The short-term outlook for Ethereum is thus marked by high volatility and persistent uncertainty. The selling pressure at $3,200 remains a major obstacle, but the launch of the ETF will undoubtedly bring a capital influx that will change the game.