On-chain data suggests that Ethereum faces substantial resistance at the $3,500 price level as the price retreats from the threshold. IntoTheBlock shared details that show the price point continues to challenge Ethereum (ETH) bulls since July 16.
ETH is currently hovering around $3,448, down 1.8% in the past 24 hours. The $3,500 to $3,600 range presents a significant supply wall.
IntoTheBlock reports that 3.13 million Ethereum addresses purchased their coins at an average price of $3,547, accumulating over 1.56 million ETH.
ETH Addresses in Loss Could Sell
While overall market sentiment remains bullish, these addresses might sell to break even or profit, adding to selling pressure.
“These addresses are holding at a loss, making it difficult for ETH to break through this key level,” analysts at IntoTheBlock stated.
Currently, 84% of ETH holders are profitable, with 5% breaking even and 11% at a loss. The derivatives market also shows bearish sentiment with a futures momentum gauge of -0.5.
Ethereum Spot ETFs Could Be a Factor
Despite the current price struggle, the market is optimistic about upcoming spot ETH ETFs. Final S-1 registration statements were filed last week, and a launch is expected this week.
Analyst Rekt Capital recently highlighted a macro bull flag for Ethereum, suggesting that the $4,000 threshold may soon be within reach.
Crypto analyst Moon Carl identified an inverse head-and-shoulder pattern on July 21, predicting that ETH could target $4,300 if this pattern plays out.
On the downside, immediate support for Ethereum is found around the $3,449 to $3,390 range.
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