Traders see ETH’s $3.2K pullback as a ‘buy’ while ETFs build steam

Traders suggest that Ether’s price falling to $3,209 has now put it in “buy” territory but warn it may not last once the “tremendous” impact of exchange-traded funds (ETFs) come into effect. 

“There are 2 major zones to buy,” pseudonymous crypto trader Sheldon The Sniper told their 490,300 X followers in a July 24 X post . He pointed to $3,300 and below as the current buy zone, and added that the $3,097 buy zone has already passed.

Sheldon further predicted that Ether could reach $4,000 “in the next week or two,” reiterating their two suggested entry points as the “ones you ride to the next all-time high breaks.”

Ether ( ETH ) is currently trading at $3,209 at the time of publication, down 7.68% over the past 24 hours, according to CoinMarketCap data .

The price has dipped another level below the closely watched $3,500 mark, around which Ether has been fluctuating since March 1, following spot Ether ETF trading debut that saw $107 million in net inflows .

However, future traders were expecting a larger price drop after the debut of Ether ETF trading. The 7.68% decline liquidated $42.53 million in short positions, along with just $2 million in long positions, according to CoinGlass data .

Analysts expect big gains for Ether’s price

Ether is going to experience “tremendous” price action from ETF inflows, similar to what happened with Bitcoin following the launch of Bitcoin ETFs, when its price jumped from $40,000 to $70,000 following the launch, Michael van de Pope explained in a July 24 analyst note .

Van de Pope doesn’t rule out Ether doubling its price in the near term, either.

“Probably it’s very likely to suspect that a price rally from $3,500 to $7,000-7,500 is on the cards,” he added, predicting that the aftermath of the ETF launch may lead to short-term volatility.

“One-two weeks for downward momentum before the real surge of Ethereum toward a new all-time high."

Swyftx lead market analyst Pav Hundal recently told Cointelegraph he believes the “nearer-term goal” is for Ether to hit its November 2021 all-time high of $4,890 .

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.