Despite the recent approval of the Spot Ethereum ETF by the U.S. Securities and Exchange Commission (SEC), Ethereum’s price has fallen. This decline indicates that investors are being cautious. A prominent crypto analyst has identified several factors that might affect Ethereum’s performance in the coming days, predicting a potential dip to around $3.4K.

Crypto expert Ali Martinez recently analyzed Ethereum’s market movements and shared some insights. He noted significant transfers of ETH to exchanges, suggesting potential profit-taking, portfolio rebalancing, or market speculation. Adding to concerns, Ethereum co-founder Jeffrey Wilke transferred 10,000 ETH, worth about $37.38 million, to the Kraken exchange, which could signal a potential sell-off and price volatility.

According to Spot On Chain data, over 242,000 ETH have been moved to exchange wallets in the past two weeks, increasing Ethereum trading activity. Martinez also pointed out that the TD Sequential indicator is signaling a sell on Ethereum’s daily chart, suggesting possible selling pressure and a price retracement.

Key Ethereum Price Levels

IntoTheBlock data indicates that around 1.81 million addresses bought about 1.66 million ETH between $3,820 and $3,700, which could provide support if the price dips. If Ethereum’s price falls below this range, the next support level lies between $3,580 and $3,462, where 3.13 million addresses acquired over 1.50 million ETH.

The critical resistance barrier for Ethereum is between $3,940 and $4,054, with over 1.16 million addresses having purchased around 574,660 ETH in this range. Surpassing this resistance and closing above $4,170 could negate the bearish outlook and potentially start a new upward trend toward $5,000.

Market experts suggest that the Ether ETF could lead to an Ethereum price rally in the long term, similar to Bitcoin’s performance after the approval of the U.S. Spot Bitcoin ETF. However, they warn of potential short-term volatility as investors might take profits after the recent ETH price surge.

As of now, Ethereum’s price has dropped about 4.5% to $3,659.16, with trading volume up 93.23% to $47.91 billion. Over the last 30 days, Ethereum saw a high of $3,943.55 and a low of $2,815.92. Additionally, Ethereum’s Open Interest fell 5.90% to $15.33 billion amid the price dip, according to CoinGlass data.