Over the past 24 hours, the price of Ethereum (ETH) has experienced a 4.2% increase, reaching $3,472 at 04:18 AM UTC. This surge in price is a direct result of the preliminary approval given by the U.S. Securities and Exchange Commission (SEC) to at least three out of the eight spot ETH ETF issuers. These ETFs are expected to commence trading next Tuesday. This regulatory development has instilled optimism in the market, leading to an increase in ETH’s price and suggesting the possibility of further gains.
Ethereum recently faced a decline in value, dropping to $2,811 amidst a broader market downturn. However, as Bitcoin began to recover, Ethereum’s price started to rise again. On the 4-hour chart, Ethereum completed a double bottom formation at $3,484. The primary question now is whether this altcoin leader can surpass the resistance level at $3,484 or if it will retreat to around $3,300. For the latest financial and business news, visit COINTURK FINANCE.
The price of ETH continues to rise, evident by its trading above the 21-day, 50-day, and 200-day Simple Moving Averages (SMA). Several technical indicators suggest an increase in bullish momentum for ETH. The Chaikin Money Flow (CMF) currently stands at 0.04 and is trending upwards, indicating a rise in buying pressure. Additionally, the Relative Strength Index (RSI) has surpassed the midpoint and currently sits at 59.37, signaling a growing bullish momentum. The Moving Average Convergence Divergence (MACD) indicator also confirms a shift from bearish to bullish momentum, further supporting the bullish trend.
When predicting the future price of Ethereum, there is potential for further upward movement, potentially reaching $4,000 and beyond. However, the altcoin leader must surpass potential resistance levels at $3,570 and $3,800. On the other hand, if bears regain control, ETH may find support around $3,350, aligned with the 21-day and 50-day SMAs.
The main driving force behind Ethereum’s recent price recovery is the SEC’s preliminary approval of spot Ethereum ETFs. According to Eric Balchunas, an ETF expert at Bloomberg, trading for these ETFs is scheduled to commence on July 23. This development has sparked speculation about substantial inflows into ETH, potentially leading to a further increase in its price. It is worth noting that this launch is set to occur just before the Bitcoin 2024 conference in Nashville, which may shift the focus from Bitcoin to Ethereum.
The optimistic sentiment surrounding the preliminary approval of spot Ethereum ETFs has raised expectations of a potential parabolic rally for ETH. Market participants anticipate significant inflows, resulting in a 1.5% increase in the total open interest for ETH across exchanges. The majority of these inflows are coming from perpetual contracts.
Please note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and conduct their own research.
