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In the last 24 hours, the price of Ethereum (ETH) increased by 4.2%, reaching $3,472 at 04:18 AM UTC. This price surge follows the U.S. Securities and Exchange Commission’s (SEC) preliminary approval for at least three of the eight spot ETH ETF issuers, with these ETFs expected to start trading next Tuesday. This regulatory development has led to optimism in the market, pushing ETH’s price up and indicating potential further gains.
Ethereum’s Price Movement and Technical Indicators
Ethereum recently dropped to $2,811 during a market-wide decline but has been on the rise since Bitcoin began to recover. On the 4-hour chart, Ethereum completed a double bottom formation at $3,484. The main question now is whether the altcoin king can break above this resistance level or pull back to around $3,300.
The price action continues to rise, as indicated by ETH trading above its 21-day, 50-day, and 200-day Simple Moving Averages (SMA).
Various technical indicators point to increasing bullish momentum for ETH. The Chaikin Money Flow (CMF) is at 0.04 and trending upwards, indicating increased buying pressure. Additionally, the Relative Strength Index (RSI) has moved above the midpoint and stands at 59.37, signaling increasing bullish momentum. The Moving Average Convergence Divergence (MACD) indicator also shows a bullish trend, confirming a shift from bearish to bullish momentum.
When forecasting Ethereum’s price, there is potential for further upward movement to $4,000 and beyond, but the altcoin king needs to surpass potential resistance levels at $3,570 and $3,800. If bears regain control, ETH could find support around $3,350, aligned with the 21-day and 50-day SMAs.
Impact of Upcoming Spot Ethereum ETFs
The primary catalyst for Ethereum’s recent price recovery has been the SEC’s preliminary approval of spot Ethereum ETFs. According to Eric Balchunas, an ETF expert at Bloomberg, trading for these ETFs is expected to begin on July 23. This development has led to significant speculation about substantial inflows into ETH, potentially driving its price even higher. Notably, this launch is set to occur just before the Bitcoin 2024 conference in Nashville, potentially shifting focus from Bitcoin to Ethereum.
Optimism surrounding the preliminary approval of spot Ethereum ETFs is fueling expectations of a potential parabolic rally for ETH. As market participants anticipate significant inflows, the total open interest for ETH across exchanges has increased by 1.5%, with the majority of these inflows coming from perpetual contracts.
