Ethereum is stable at the time of writing, rising rapidly after falling to around $2,800 earlier this month. The second most valuable coin is up over 24% at the time of writing and remains in an uptrend despite the scare of July 4 and 5.

Ethereum encounters powerful resistance at $3,500

Even though buyers are expecting ETH bulls to push and push the coin above $3,700, a key resistance line, on-chain data shows that there is resistance. According to IntoTheBlock data On July 22, ETH encounters powerful resistance at $3,500, which has been holding since July 16.

At this level, 3.13 million unique addresses bought ETH at an average price of $3,547. Therefore, if prices fall below this level, holders of these cryptocurrencies will find themselves in the red and will consider exiting at a loss.

The fact that some addresses may be inclined to pull out of the market when prices fall makes the overall environment breakable, which makes growth much more tough. This makes the situation even worse considering that ETH is not all that solid despite the July 15 expansion.

The daily chart shows that the uptrend is still ongoing, but there are pockets of weakness due to the sharpness of the declines on July 4 and 5. The sell-off forced ETH down to the $2,800 level, reversing the gains made on May 20.

For buyers to take control, confirming the July 15 uptrend, prices need to break above $3,500, but most importantly, $3,700. This reaction line is key and is the only local resistance that buyers need to overcome for ETH to rise above $3,900 and $4,100.

Millions of ETH withdrawn from exchanges, launch of Spot ETFs increases demand

For now, the power lies in reading from on-chain analytics. Although over three million users are in the red, more ETH is still being moved from exchanges.

July 19th data IntoTheBlock revealed that $126 million worth of ETH was moved from leading exchanges. Significantly, this development comes amid the expected acceptance of the first batch of Ethereum ETF spot in the United States.

If the US Securities and Exchange Commission (SEC) gives the green featherlight to these products this week, it will be a huge victory for ETH.

The regulatory clarity that comes with this move will be significant. SEC officials in the United States have yet to clarify ETH’s status.

However, once Ethereum-based spot ETFs are listed on exchanges in the country, it is a sheltered bet that the regulator will agree that the second most valuable coin is a commodity, similar to Bitcoin.