Ethereum is trading lower, as visible in the daily chart. However, a positive development is that sellers didn’t wipe out gains of April 8. Therefore, though prices are under pressure, the bullish breakout above $3,700 is valid from a volume analysis perspective. This outlook remains as long as prices don’t drop some more today.

So far, Ethereum is down 3% in the past 24 hours but up 6% in the previous trading week. Falling prices have affected sentiment, as can be seen from the average trading volume in the past trading day. Data shows participation is down from the average, shaving 16% to around $15 billion.

The following fundamental events might spur activities and help soak in selling pressure, if bears press on, in the sessions ahead:

• The layer-1 scene is about to get even more competitive. Paradigm, a crypto venture capital firm, is leading a funding round for Monad Labs. The developer entity is building a new blockchain to take on Solana and Ethereum. Monad Labs plans to build a better version of Ethereum from the ground up while retaining compatibility with the first smart contracts platform.
• VanEck and CoinShares, who are issuers of spot Bitcoin ETFs, think the United States SEC will not approve a similar product for Ethereum. The regulator has yet to give clarity on whether ETH is a security or not. Bitcoin is considered a commodity, similar to gold, in the eyes of the United States SEC and CFTC.

Ethereum Price Analysis

The broader crypto market is under pressure, and ETH/USD wasn’t spared.

Nonetheless, traders are confident of the coin’s prospects.

So far, Ethereum remains in a bullish formation as long as bears don’t reverse the gains of April 8 today.

If the dump is within the rising volume, forcing prices below $3,400, ETH might slip even lower in the days ahead.

For the uptrend to be valid, buyers must soak in selling pressure and push the coin above $3,700 and April 1 high.