Ethereum’s price holding $3700 could be key to a strong rally in Q3 – Why?

Key Points

1. Ethereum's price holding at $3,700 is seen as a critical level for its long-term performance, with potential to trigger a new altseason if maintained.

2. Spot Ethereum ETFs have injected $1.7 billion into the market, reversing previous losses and significantly increasing futures market activity by 56%.

3. A record 30% of all ETH is staked, reducing market supply, while whales have purchased an additional 240,000 ETH this month.

4. Potential risks include a market downturn due to macroeconomic factors, historical Q3 underperformance, and a possible short-term price drop similar to Bitcoin's post-ETF launch.

5. Ethereum faces competition from Layer-2 solutions and other blockchains, with its next upgrade, 'Fusaka,' aimed at reducing transaction costs to sub-penny levels.