Ethereum Price Analysis: ETH Aims for $4,000 Amid Lingering BTC Liquidations
The recent activities in the cryptocurrency market have stirred fresh liquidations following a dynamic week spurred by US Presidential candidate Donald Trump’s remarks at the Bitcoin Conference in Nashville. Ethereum’s price has begun to reverse its downward trend, showing a 1.5% increase as bullish investors anticipate a push towards $4,000 later in the week.
Bitcoin, after a brief decline over the weekend, surged above $70,000 on Monday. However, it faced volatility amid concerns of a potential sell-off triggered by the US government’s involvement with Bitcoin. The largest cryptocurrency was trading at $67,227, marking a 1% decrease for the day. Notably, the US government transferred 29,800 Bitcoins seized from Silk Road, a dark web marketplace, in two separate batches, as reported by Arkham Intelligence.
Although this recent transfer is not the first this month, with a prior transfer of 237 BTC in the first week of July, investors appear unsettled by these movements. The government’s subsequent transfer of another 60 BTC last week has raised questions about the motives behind these actions.
Despite the uncertainty surrounding these transfers, concerns about an imminent sell-off are widespread. If Bitcoin continues on its downward trajectory, it may retest the $66,000 support level before any significant upward momentum above $70,000 materializes.
Turning to the ETH/BTC pair, it has seen a 3.5% increase, reaching a ratio of 0.0491 after successfully testing the $0.0474 support level. Traders are optimistic about the upcoming week, especially with the growing excitement surrounding Ethereum following the approval of a spot ETF.
On-chain data from Santiment highlights the increasing interest in Bitcoin, Ethereum, and Solana compared to meme coins within the crypto market. While this trend often correlates with rising prices for these top assets, Santiment warns that it could also indicate a sense of caution among investors. Conversely, a shift towards more speculative assets might signal growing greed in the market.
Technical indicators suggest a potential uptrend, with the Moving Average Convergence Divergence (MACD) indicator poised to trigger a buy signal. Traders are closely monitoring the MACD line for a potential crossover above the signal line to confirm this upward momentum.
Analyzing the ETH/BTC price chart, a breakout above the inverse head and shoulders pattern could play a crucial role in validating the yearly Ethereum price forecast and Bitcoin price prediction.
As Ethereum defends the $3,300 support level, reinforced by the 20-day Exponential Moving Average (EMA), ongoing recovery is supported by a buy signal from the MACD indicator. A breach of the resistance posed by the 50-day and 200-day EMAs is a key focus for traders, as breaking out of this channel would negate a possible bear flag pattern correction.
