Ethereum Holds Above $3,000: Why Is Bitcoin So Important For ETH?

Dalmas Ngetich•Friday, May 10, 2024•2 min read

Ethereum flipped bullish on May 9, much to the relief of bulls. At spot levels, ETH is trading above $3,000. However, the coin is confined within a narrow trading range. Ideally, yesterday’s gains should have been within a wide bar pumped by expanding trading volume. For now, volumes are low, and volatility is suppressed. This would change if bulls extended yesterday’s gains, pushing towards $3,300.

At press time, Ethereum is flat on the last day and week. With prices teetering around the psychological round number at $3,000, this was largely expected. A bounce will be a reprieve for buyers, helping revive stalling liquidity and volatility. To illustrate, trading volume on the last day remains at over $11 billion, reflecting the general inactivity across the board.

Ethereum daily chart for May 10

Traders should closely monitor the following Ethereum news:

Joseph Lubin, the co-founder of Ethereum, is convinced the United States SEC doesn’t want Ethereum to transform the status quo in banking. The executive said instead of engaging the industry in meaningful discourse, the SEC is involved in enforcement actions, stifling innovation in the sector. Their action, he continued, is to paralyze the industry and force innovators offshore.
One analyst says Ethereum’s performance in the short to medium term is largely tied to the performance of the world’s most valuable coin, Bitcoin. If BTC soars, it will likely lift ETH and continue outperforming Ethereum.

Ethereum Price Analysis

ETH/USD is flat when writing.

As it is, ETH is heavily shaped by fundamental factors, especially the regulator’s position in the United States.

From a technical level, ETH is within a range and in a bear breakout pattern as long as prices are kept below $3,300.

$2,800 is an interesting support level. If broken, Ethereum could collapse to new Q2 2024 lows.

A relief for bulls will be when they convincingly close $3,300 on rising volume. In that case, the selling pressure of mid-April would have been contained. Once this prints out, bulls will target $3,700.

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