Ethereum Price Eyes $3900 Rebound as On-Chain Data Favors Ethereum Over Bitcoin

The second largest cryptocurrency Ether witnessed medium volatility for the past two weeks, hovering above $3360. The prolonged correction in Bitcoin and development around spot ETH ETF are fueling the uncertainty sentiment in this asset resulting in sideways action. However, with the broader trend bullish the Ethereum price shows growth in on-chain data indicating a potential for bullish reversal.

Also Read: S&P Global: Ethereum Restaking Can Give Birth to ‘Internet Bond’ Market, Will SEC Approve?

Key Support Levels In Ethereum Price Amid ETF Updates

Ethereum coin entered the current correction trend in late May as the price reverted from the $3975 level. With Bitcoin price leading a downward trend, the ETH price of 15.5% to seek support at $3360, concising with the 100-day EMA.

The long-tail rejection candles at this support indicate the intact demand pressure likely bolstered by the development in Spot ETH ETF.  Six companies have updated their SEC applications for Ethereum ETFs, as highlighted by Satoshi Club. 

Six companies have submitted amended applications to the SEC for the registration of spot Ethereum ETFs.

Two of them disclosed the commission fees of 0.19% and 0.2%.

Three companies indicated the initial investment volume, which is significantly lower than that of…

— Satoshi Club (@esatoshiclub) June 22, 2024

Two firms disclosed fees of 0.19% and 0.2%, while three revealed initial investment volumes significantly lower than BlackRock’s. With the recent success of Bitcoin ETFs, the U.S. listing of spot ETH is anticipated for a major impact on Ether price.

According to CryptoQuant, Ethereum’s Market Value to Realized Value (MVRV) ratio is outpacing that of Bitcoin, suggesting an uptick in market activity for Ethereum. This increase is often a precursor to broader market movements, historically leading to rallies in other altcoins following Ethereum’s lead. 

$ETH MVRV is rising faster than $BTC MVRV.

This suggests that #ETH’s market is heating up.

Historically, when #Ethereum surges, other alts tend to follow. pic.twitter.com/AXUrmPswGF

— CryptoQuant.com (@cryptoquant_com) June 21, 2024

Thus, even if the overhead supply pressure persists, the ETH price may likely fall 6% before witnessing high demand pressure at the ascending trendline. This dynamic support intact since November 2023 bolsters a series of higher lows maintaining a buy-the-dip sentiment.

If the support holds, the ETH price could take the next recovery leap targeting the $3900.

However, for buyers to regain better control of this asset, a breakout from the above overhead trendline (blue line) is crucial which could assist the ETH price prediction to target ATH at $4842.

 Technical Indicator:

• Pivot Levels: With the ETH price projecting a potential for a new high, the Pivot indicator highlights potential resistances at $5371, followed by $6000.
• RSI: A daily Relative Strength Index slope wavering around the 50% mark indicates a neutral sentiment among market participants. 

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