Over the past 24 hours, Ethereum (ETH) has experienced a price surge of 4.2%, reaching $3,472 at 04:18 AM UTC. This increase in price follows the preliminary approval by the U.S. Securities and Exchange Commission (SEC) for at least three out of the eight spot ETH ETF issuers. These ETFs are expected to begin trading next Tuesday. This regulatory development has sparked optimism in the market, driving up the price of ETH and suggesting the potential for further gains.
Ethereum’s price recently dropped to $2,811 during a market-wide decline but has been on an upward trend since Bitcoin started to recover. On the 4-hour chart, Ethereum has formed a double bottom pattern at $3,484. The key question now is whether the altcoin king can break above this resistance level or experience a pullback to around $3,300. Stay updated on the latest financial and business news by visiting COINTURK FINANCE.
The price action for ETH continues to rise, with the cryptocurrency trading above its 21-day, 50-day, and 200-day Simple Moving Averages (SMA). Several technical indicators suggest an increasing bullish momentum for ETH. The Chaikin Money Flow (CMF) is at 0.04 and trending upwards, indicating a rise in buying pressure. Furthermore, the Relative Strength Index (RSI) has moved above the midpoint and currently stands at 59.37, signaling a growing bullish momentum. The Moving Average Convergence Divergence (MACD) indicator also confirms a shift from bearish to bullish momentum, supporting the bullish trend.
In terms of price forecast, ETH has the potential for further upward movement towards $4,000 and beyond. However, it must overcome potential resistance levels at $3,570 and $3,800. If bears regain control, ETH could find support around $3,350, which aligns with the 21-day and 50-day SMAs.
The primary driver 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 set to commence on July 23. This development has sparked speculation about significant inflows into ETH, potentially driving its price even higher. It is worth noting that this launch will occur just before the Bitcoin 2024 conference in Nashville, which could potentially shift the focus from Bitcoin to Ethereum.
The optimism surrounding the preliminary approval of spot Ethereum ETFs is fueling expectations of a potential parabolic rally for ETH. Market participants anticipate substantial inflows, as evidenced by the 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 does not constitute investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and conduct thorough research on their own.