Ethereum is down over 2% on Wednesday, trading at $3,3, after failing to break through a significant barrier at $3,500.Ether Bulls was rejected for about $3,523, which resulted in lengthy liquidations that cost about $33 million. However, long liquidations have decreased in frequency and have only made up 50% of all ETH liquidations during the last day.

At today’s open, Ethereum bulls are under pressure to test the critical support level of $3.5K. Some signs suggest the price may break through this barrier and back on the negative correcting track. Stochastic, however, exhibits encouraging signals that could stop further drop.

Should the downturn persist and a breach of this level be made, negative targets would be aimed at about 3132.80$. On the other hand, a recovery towards $3641.82 would be supported by consolidation above it. The $3,203 is a crucial level of support for the downside since a move below it could intensify the general negative mood.

For the altcoin to validate the bullish attitude surrounding the possible spot ETH ETF debut, it must overcome the $3,629 resistance, a price level it has not been able to sustain any meaningful rise above in the previous three weeks.

However, the introduction of spot Ether exchange-traded funds (ETFs) could cause the ETH to outperform Bitcoin in the weeks following their US launch. The ETFs, which could debut as soon as July 8, are a “golden egg” for ETH’s price, while Bitcoin is expected to come under selling pressure as this week sees the return of $8.5 billion to creditors of the defunct exchange Mt. Gox.
ETH has lagged behind Bitcoin for over a year, which has had market-leading gains this year thanks to inflows of nearly $14 billion into exchange-traded products for the cryptocurrency.