Ethereum Drops But Must Break $3,500 Amid Solana’s Tough Challenge

Ethereum is printing lower lows and finding rejection from spot rates. After two days of retracement, the bar on July 18 had a long upper wick, pointing to selling pressure. Looking at price action, it is likely that yesterday’s weakness might spill over. This development could fast-track the sell-off below $3,300, pouring cold water on bullish hopes. Even so, aggressive optimists might see this as an opportunity to load some more considering expectations of spot Ethereum ETF approval next week.

The result of yesterday’s sell-off is evident. Ethereum is under pressure, dropping by 2% in 24 hours. However, the coin is up 11% in the last week of trading. Since sellers appear to be pressing on, falling prices continue to diffuse the upside momentum forcing traders to take profit. On the previous day, the average trading volume remains flat at around $15 billion.

For what traders expect going forward, they should closely watch the following trending Ethereum news:

• With Solana prices rallying and developers making enhancements, the modern blockchain has flipped to Ethereum, looking at processed DEX volumes. This surge is primarily because the network is a go-to platform for meme coin projects and traders.
• According to reports, the United States SEC has green-lit three spot ETF issuers to launch next orts. However, like what happened when spot Bitcoin ETFs hit the market, experts expect all spot Ethereum ETFs to launch the same day.

Ethereum Price Analysis

ETH/USD is in an uptrend at spot rates.

Even with recent weakness, there is a bull flag and the July 15 bar anchors the current formation.

Traders might consider buying the dip as long as Ethereum is trending inside this bullish bar. This will be valid if prices trend above the 20-day moving average or $3,200. Any drop below this will swing price action in favor of sellers.

On the other hand, a clean break above $3,500, registering fresh weekly highs, could see ETH fly to $3,700.

If the bar is with high trading volume, a base would have been set for prices to rally.