Ethereum Price Analysis and Market Outlook
The price of Ethereum is currently trading lower, as seen in the daily chart, but there is a positive development that sellers did not wipe out the gains from April 8. This indicates that the bullish breakout above $3,700 is still valid from a volume analysis perspective. However, prices are under pressure and it remains to be seen if they will drop further today.
In the past 24 hours, Ethereum has seen a 3% decrease in price, but it is still up 6% from the previous trading week. The falling prices have affected sentiment, as the average trading volume has decreased by 16% to around $15 billion.
Despite the current market conditions, there are some fundamental events on the horizon that could help alleviate selling pressure. Paradigm, a crypto venture capital firm, is leading a funding round for Monad Labs, a developer entity building a new blockchain to compete with Solana and Ethereum. Additionally, VanEck and CoinShares believe that the SEC will not approve a spot Bitcoin ETF for Ethereum, as the regulatory status of ETH remains unclear.
Traders remain confident in Ethereum’s prospects, as long as the gains from April 8 are not reversed. However, if prices fall below $3,400 and the volume continues to rise, ETH could see further declines in the coming days. To maintain the uptrend, buyers will need to absorb selling pressure and push the price above $3,700 and the April 1 high.
