Ethereum Price Analysis: Here’s the $1 Billion Signal Keeping ETH Below $3,600

Ethereum price has consolidated around $3,500 mark after a 13% correction saw it decline to a 30-day low of $3,357 on Tuesday June 18, but latest data from 20 top exchanges shows a looming sell-wall preventing ETH from joining the crypto market rebound trend. 

Ethereum Price Rebound Stalls at $3,500 after Recovering from 30-Day Low

On June 19, 2024, the global crypto market halted the 3-day losing streak as bulls traders sought to mitigate the raging market liquidations. However, while mega-cap assets like FetchAI (FET) and Toncoin (TON) have benefited from the growing optimism, Ethereum price continues to struggle for traction.

In effect, the second-largest cryptocurrency project has failed to establish a steady support base above the $3,500 resistance level despite growing bullish optimism within the broader crypto markets.

As seen above Ethereum price has now reclaimed the $3,500 milestone, after falling to a 30-day low of $3,357 on Tuesday June 18. But bears have continued hinder attempts to advance further.

After over 48-hours of market recovery, Ethereum price remains sandwiched within the narrow $3,450 – $3,550 channel at the time of writing on June 20.

This persistent downswings amid the overall crypto market recovery phase could be attributed to investors rotating funds out of the ETH markets, as they await the official launch of the Ethereum ETFs which continue to suffer delays on the final authorization with the US Securities and Exchange Commission (SEC).

With official launch date in sight, the continuation of this uptrend now looks unlikely as retail traders were spotted pilling on more bearish pressure to sell-off ETH and ape into other more promising assets as the market recovery phase gains momentum.

Investors Looking to Sell-Off $1.1 Billion worth of ETH

Ethereum price has stagnated around the  $3,500 level in for the better part of the this week. But looking ahead, investors seem to be growing disillusioned with the constant delays surrounding Ethereum ETFs.

Elsewhere as the broader altcoin market recovers, the stock market boom, led my NVIDIA also sent the S&P 500 to all-time highs. Consequently, rather than endure the ETH price stagnation, many investors are now seeking to explore short-term profit opportunities in other markets.

IntoTheBlock’s Aggregate Exchange Order Books data tracks active buy/sell orders placed for an asset across 20 leading crypto currency exchanges globally.

As things stand, ETH traders have placed orders to sell about 300,000 ETH at the average price of $3,522, reflecting an effective sell pressure worth around $1.1 billion.

Meanwhile, with the delays around ETH spot ETHs, many prospective investors on the sideline are currently unwilling to enter the ETH markets until there’s more clarity from the SEC and various fund sponsors making final adjustments to their application.

Consequently, the ETH buy orders has fallen short, compared to the current market supply, with only 284,000 ETH buy-orders currently listed across the top 20 trading crypto exchanges and trading platforms including Binance and Coinbase.

This implies that there is now currently excess market supply of 16,000 ETH (~$56.2 million).

Notably, when the supply of an asset exceeds the effective demand, it puts significant downward pressure on prices, as sellers may now be forced to compete to get their sell-orders filled quicker by lowering prices marginally.

This explains why Ethereum price has failed to breakout above $3,600 level amid the crypto market recovery in the last 48 hours.

If this market dynamic persists, with no end insight to the Ethereum ETFs launch Saga, strategic traders can expect Ethereum continue consolidating around the $3,500 area as the week draws to a close.