In the past day, the price of Ethereum (ETH) has seen a 4.2% increase, reaching $3,472 at 04:18 AM UTC. This surge in price can be attributed to the U.S. Securities and Exchange Commission’s (SEC) preliminary approval of at least three out of the eight spot ETH ETF issuers. These ETFs are expected to begin trading next Tuesday. This regulatory development has created optimism in the market, leading to an increase in ETH’s price and suggesting the possibility of further gains.
Ethereum’s price movement and technical indicators indicate positive trends. Although it experienced a decline alongside the overall market, Ethereum has been on the rise since Bitcoin started to recover. On the 4-hour chart, Ethereum formed a double bottom pattern at $3,484. The main question now is whether Ethereum, known as the altcoin king, can break above this resistance level or experience a pullback to around $3,300.
Various technical indicators support the bullish momentum for ETH. ETH is trading above its 21-day, 50-day, and 200-day Simple Moving Averages (SMA), indicating a continued rise in price. The Chaikin Money Flow (CMF) is currently at 0.04 and trending upwards, suggesting increased buying pressure. The Relative Strength Index (RSI) has moved above the midpoint and stands at 59.37, signaling an increase in bullish momentum. The Moving Average Convergence Divergence (MACD) indicator also indicates a bullish trend, confirming a shift from bearish to bullish momentum.
When predicting Ethereum’s price, there is potential for further upward movement towards $4,000 and beyond. However, Ethereum must overcome potential resistance levels at $3,570 and $3,800. In the event that bears regain control, ETH could find support around $3,350, aligning with the 21-day and 50-day SMAs.
The SEC’s preliminary approval of spot Ethereum ETFs has been the primary catalyst for Ethereum’s recent price recovery. These ETFs are expected to begin trading on July 23. This development has sparked speculation about significant inflows into ETH, potentially driving its price even higher. Importantly, this launch is scheduled just before the Bitcoin 2024 conference in Nashville, which could shift focus from Bitcoin to Ethereum.
The optimism surrounding the preliminary approval of spot Ethereum ETFs has fueled expectations of a potential parabolic rally for ETH. Market participants anticipate significant inflows, as evidenced by a 1.5% increase in the total open interest for ETH across exchanges, with most of these inflows coming from perpetual contracts.
Please note that the information provided in this article should not be considered investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
