Ethereum is firm, shaking off sellers at press time. Even with the recovery, there are prints of weakness following recent losses. The coin is changing hands below $3,500 and is still far from 2024 highs. As prices consolidate, the path of least resistance remains northward, at least from a top-down preview.

As it is, ETH is bullish. The total market cap is up 2% to over $413 billion. Concurrently, trading volume is around $12 billion, up 1% but below the recent average of around $20 billion. This formation suggests that despite the price recovery, traders are still unsure. 

In the short term, traders can keep track of the following Ethereum news events:

• Analysts speculate that the United States Securities and Exchange Commission (SEC) is keen on classifying ETH as a security. Recent news shows that they have been issuing subpoenas to companies involved with the Ethereum Foundation, casting doubts on spot Ethereum ETF approval. If ETH is classified as a security, it means retail traders in the United States will be barred from freely trading the coin.
• BlackRock has also revealed that only a few clients are inquiring about spot Ethereum ETFs. So far, a BlackRock executive said most clients are keen on stacking Bitcoin.

Ethereum Price Analysis

ETH/USD is bullish, as aforementioned.

From a top-down analysis, buyers have the upper hand. A critical reaction point is at $3,500, a round number. However, optimistic traders should closely monitor the zone between $3,500 and $3,600.

Technically, Ethereum is within a bear breakout formation. Though prices recovered over the weekend, it remains within the bearish bar of March 19.

Therefore, a close above the middle BB with rising volume is necessary for the uptrend to be valid.

Conversely, losses below $3,100 will sway price action to favor sellers.