Ethereum Price Faces $1 Billion Sell Pressure as Bloomberg Hints at ETF Delay by SEC

Ethereum Price Analysis

Ethereum price briefly broke above the $3,500 territory on July 1, but more delays surrounding ETH ETFs launch threatens to scuttle the rally, technical indicators suggest that ETH bulls must now defend the $3,300 support level fiercely in the week ahead.

Ethereum Price Stalls at $3,500 as SEC Delays ETH ETF Launch

Ethereum price action looks set for another lukewarm week, amid bearish reports surrounding the impending ETH ETF launch.

The global crypto markets made a positive start to the July 1 sparking hopes of widespread market rebound in the week ahead. Bitcoin price rose a 7-day peak of $63,699 on Donald Trump’s landslide victory during a Presidential Debate on Friday.

In the memecoin markets, Dogwifhat (WIF) led the way with over 58% gains, the FetchAI (FETFET) also kept the CryptoAI sector rally going with double-digit bounce from last week’s bottom.

But curiously, while the broader crypto markets enjoyed a significant upside on Monday July 1, Ethereum price appears to have stalled at the $3,500 level. The price stagnation can be attributed to reports of fresh delays surrounding Ethereum ETFs launch in the USA.

According to Bloomberg analyst Eric Balchunas, the Ethereum ETF which were previously expected to be launched of official trading on July 2, has now been pushed back to July 8, due to additional scrutiny for the US Securities and Exchange Commission (SEC).

Recall that the spot ETH ETF filings have been approved since May 24. But since then fund sponsors have been stuck in an hiatus making last minute adjustments to their filings before official the Ethereum derivatives are officially launched for trading.

Ethereum price has reacted negatively to the latest news of the further delays to the ETF launch delay by the SEC. The chart above depicts how had broken above the $3,519 level in the early hours of July 1. But following the news reports from Bloomberg Analysts, ETH price quickly retraced towards the $3,460 area at the time of writing around 12:00 GMT on July 1.

Ethereum Faces $1B Sell Pressure in the Week Ahead

However, looking beyond the price action, Ethereum could face additional downward pressure in the week ahead. On-chain data shows that many retail short-term traders are making strategic moves to exit their ETH positions following news of the ETF launch delay.

IntoTheBlock’s Exchange Order Books data tracks the total value of buy/sell orders placed for a specific crypto assets, aggregated across to cryptocurrency exchanges. When the number of sell-orders surpasses active market demand (buy-orders) it is often a precursor to a price correction phase.

As of July 1, Ethereum Aggregated Exchange Order Books data shows that crypto traders have mounted active buy orders to sell 290,000 ETH coins at the average price of $3,456.

Meanwhile the total active buy-orders amount to less than 256,000 ETH. With short-term sellers looking to exit rapidly to avoid the adverse impact of the ETH delays and ape into more buoyant assets, Ethereum could witness more sell-orders flow into exchanges as the week unfolds.

Valued at the current prices, the current excess supply of 34,000 ETH  is worth approximately $117 million. Without a significant demand surge to mop-up that exceess supply, bears could capitalize on this large disparity to force further downswings towards the $3,300 level in the week ahead.

Ethereum (ETH) Price Analysis: Bulls to Defend $3,300 Support Fiercely

Etheruem price currently hovering around $3,457 level. However, technical indicators suggests that Ethereum has been experiencing a period of consolidation with significant support at $3,300.

This level is critical as it represents a strong foundation where buyers have historically stepped in to prevent further declines. If Ethereum’s price falls below this level, it could signal a bearish trend, making it essential for bulls to defend this support fiercely.

Another key support level is around $3,250, which serves as an additional buffer zone. Should the price dip below these levels, the next significant support can be found around $3,000, a psychological level likely to attract buyers.

On the resistance side, the immediate challenge for Ethereum is the $3,500 level. This level has proven to be a point of resistance where selling pressure tends to increase, preventing the price from moving higher easily.

Beyond this, the $3,750 level stands out as another significant resistance point. This is likely due to its alignment with key Fibonacci retracement levels, indicating areas where the price previously faced difficulty breaking through.