Ethereum’s recent price movements have hit a significant barrier at the $3,500 mark, according to on-chain data.
Despite bullish market sentiment, ETH has struggled to surpass this level, leading to notable price fluctuations.
On July 16, Ethereum bulls faced a substantial challenge at the $3,500 threshold. Data from IntoTheBlock revealed that this price level has been a significant resistance point.
As of now, ETH is trading around $3,448, having declined by 1.8% over the past 24 hours from highs above $3,560.
One key reason for this resistance is the large number of Ethereum addresses holding coins purchased at or near this price.
Specifically, 3.13 million addresses acquired over 1.56 million ETH at an average price of $3,547. These holders, currently at a loss, might be inclined to sell their holdings to break even, creating a supply wall.
Despite the resistance, the broader market sentiment remains optimistic.
About 84% of Ethereum holders are profitable, with only 11% holding at a loss.
However, the derivatives market presents a mixed picture, with a bearish futures momentum gauge reading of -0.5.
Upcoming developments could impact Ethereum’s price trajectory. The launch of spot ETH ETFs is highly anticipated, with trading expected to begin soon.
This could introduce new dynamics into the market, potentially pushing ETH towards the $4,000 mark.
Analysts are also watching for technical patterns. Rekt Capital highlighted a macro bull flag, suggesting a possible continuation of the upward trend.
Moon Carl pointed out a bullish inverse head-and-shoulder pattern, predicting a short-term target of $4,300 if the pattern holds.
For now, Ethereum faces immediate support between $3,449 and $3,390.
