🌎 Ethereum Faces Resistance at $3,500 as Bulls Struggle to Break Through

On-chain data indicates that Ethereum faces significant resistance at the $3,500 price level as it retreats from this threshold. Recent analysis shows that this price point has been a tough barrier for Ethereum bulls since July 16.

As of now, ETH is trading around $3,448, having dropped 1.8% in the past 24 hours from intraday highs above $3,560. What makes the $3,500 to $3,600 range a critical supply wall for Ethereum?

According to data, 3.13 million Ethereum addresses purchased their coins at an average price of $3,547. These addresses cumulatively hold over 1.56 million ETH.

ETH Addresses in Loss Could Sell

While the overall sentiment is positive for crypto, there’s a likelihood that addresses that bought ETH at or above $3,500 might look to sell at break-even or for profit. This could increase selling pressure, making it difficult for ETH to break past this key level.

“These addresses are holding at a loss, adding to the selling pressure and making it difficult for ETH to break through this key level,” analysts noted.

Currently, 84% of ETH holders are profitable, with about 5% at the break-even point and 11% at a loss. Despite the positive sentiment, the derivatives market sends a bearish signal with a futures momentum gauge value of -0.5.

Spot ETFs and Market Sentiment

Despite Ethereum’s struggle at the $3,500 level, market sentiment remains bullish as it anticipates the debut of spot ETH ETFs. Issuers filed final S-1 registration statements last week, and the trading debut is expected soon. Experts suggest a potential launch on July 23.

Analyst Rekt Capital recently highlighted a macro bull flag for Ethereum, indicating a trend continuation. This suggests that the $4,000 threshold may soon be within reach for bulls.

Additionally, crypto analyst Moon Carl identified a bullish inverse head-and-shoulder pattern on July 21. If this pattern plays out, ETH could target $4,300 in the short term.