Ethereum to Break Multiple Resistance Levels Following Launch of 10 ETFs Next Week

The Ethereum price faces a critical resistance level of around $3,500, slowing its recent upward momentum. On-chain data reveals a growing amount of staked ETH, signaling increased investor confidence as the launch of ten U.S. spot ETH ETFs approaches.

Despite this optimism, the ETH/SOL trading pair shows some signs of weakness, suggesting that Ethereum might struggle against Solana soon.

Ethereum Price Projection, Relative to ETF Launch

According to data from IntotheBlock, the amount of staked ETH has reached a record high of $47.27 million as of July 4. This rise in staked ETH signals growing confidence in the Ethereum network.

Meanwhile, the RSI for ETH briefly reached the overbought zone around 70.06 before settling back to 63.42. Its upward trajectory and position above the moving average indicate that a bullish move is imminent for the token.

Looking ahead, the launch of ten spot Ethereum ETFs on July 23 is a significant milestone. Final S-1 drafts have been submitted to the SEC, and seven out of ten issuers are offering fee waivers.

JUST IN: Ten Ethereum ETFs launching next week.

@JSeyff pic.twitter.com/9NDH4gIW3J

- Radar (@RadarHits) July 17, 2024

Grayscale, ProShares, and Invesco are among the issuers. Grayscale charges the highest fee, 2.5%, while Franklin Templeton offers the lowest, 0.19%.

The recent Ethereum Community Conference (EthCC) 2024 in Brussels, held from July 8 to 11, emphasized a shift to infrastructure development from protocol development.

Christine Kim, Vice President of Research at Galaxy, highlighted this transition, stating the evolving focus of the Ethereum community. This move could also encourage a bullish path for the token.

"Regardless of when Pectra goes live, the kind of innovation that's going to be happening on rollups, the kind of innovation that's going to be happening to the MEV supply chain, kind of innovations that are gonna be happening for staking, that's all chugging along with or...

- Christine Kim (@christine_dkim) July 16, 2024

Also, BlockScholes's Senti-Meter Index is projecting a positive outlook for Ethereum. It indicates the growing confidence surrounding Ethereum due to the prospective ETH ETF launch.

Ethereum Price Analysis

Amid this positive sentiment, Ethereum's price looks set to make a strong recovery. It has created an inverted head-and-shoulders pattern that suggests a potential rise to $4,400, a 27% increase from current levels.

Ethereum's price stands above the 50-day and 200-day simple moving averages (SMAs), signaling a possible bullish move.

However, to solidify this pattern, Ethereum must face correction to form the right shoulder of the pattern. A decline below $3,250 could disrupt this bullish setup and lead to further downside.

Meanwhile, the ETH/SOL pair is at a pivotal point. It is trading below both the 50-day and 200-day SMAs and is approaching the resistance trendline of a descending channel.

If Solana continues outperforming Ethereum, ETH might record an 11.6% decline against Solana. Although not highly likely at the moment, this scenario could unfold if the upcoming ETF launches trigger a sell-the-news" motion.

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