Defiance Capital’s founder and CEO Arthur Cheong made a bold prediction that Ethereum (ETH) could potentially reach $4,500 even before the launch of spot ETFs. According to data from the crypto data and price platform CoinMarketCap, ETH is currently trading at $3,885, up 3.6% in the last 24 hours.
Bulls Losing Momentum in ETH
The U.S. Securities and Exchange Commission (SEC) recently approved 19b-4 listing requests from various Ethereum ETF issuers, marking a significant shift in its approach to the altcoin king. Before this approval, analysts and major banking institutions like Standard Chartered believed the chances of these products being approved were low. This news of an imminent ETF approval led to a significant upward trend, causing ETH’s price to rise from $3,600 to $3,900 in three days.
Despite this bullish catalyst, the altcoin king struggled to maintain a position above the $4,000 level and remained 19.8% below its all-time high. According to 100eyes Crypto Scanner, ETH’s price showed a bearish breakdown on the hourly timeframe. This bearish formation is characterized by an asset making new lower highs while the Relative Strength Index (RSI) records lower peaks. Currently, ETH is moving with weakening momentum despite the recent price surge.
For Ethereum, the RSI recorded a lower peak in the 65-70 range after the price rose to the significant horizontal resistance level of $3,900. This indicates that while the price is rising, the underlying momentum is not as strong. If this bearish trend continues, ETH’s price could see a pullback from its current level.
Eyes on Full Approval of Spot Ethereum ETFs
On the other hand, if the trading volume is strong enough, there is a possibility that Ethereum could break above the $3,900 resistance level. The outcome largely depends on whether the volume can support a continued upward movement.
Analysts and experts expect the altcoin king to gain the momentum needed to surpass the critical resistance level of $3,900 to $4,000 with the full approval of the spot Ethereum ETF. Cheong’s prediction of reaching $4,500 depends on overcoming this resistance and maintaining strong market momentum.
