Arthur Cheong, the founder and CEO of Defiance Capital, has projected that Ethereum (ETH) could potentially hit $4,500 even before the debut of spot ETFs. Currently, ETH trades at $3,885, witnessing a 3.6% increase over the past 24 hours, according to CoinMarketCap. This statement comes amidst significant developments in the regulatory landscape and market dynamics.
What Is the SEC’s Role in Ethereum’s Future?
The U.S. Securities and Exchange Commission (SEC) has recently approved 19b-4 listing requests from various Ethereum ETF issuers, marking a groundbreaking shift in its stance towards this leading altcoin. Prior to this approval, analysts and financial institutions like Standard Chartered had low expectations for these products. The news of an imminent ETF approval sparked a substantial upward trend, pushing ETH’s price from $3,600 to $3,900 within just three days.
Despite this bullish catalyst, Ethereum struggled to hold above the $4,000 mark, remaining 19.8% below its all-time high. Analysis from 100eyes Crypto Scanner indicated a bearish breakdown on the hourly chart, characterized by ETH making new lower highs while the Relative Strength Index (RSI) recorded lower peaks. This suggests weakening momentum despite the recent price surge.
Why Is Momentum Critical for Ethereum?
The RSI for Ethereum has shown a lower peak in the 65-70 range after the price touched the significant horizontal resistance level of $3,900. This implies that while the price increases, the underlying momentum is faltering. If this bearish trend persists, ETH’s price could experience a pullback from its current level.
Key Takeaways for Traders
- Monitor SEC announcements regarding the full approval of spot Ethereum ETFs.
- Watch for trading volume to gauge the potential for ETH to break above $3,900.
- Keep an eye on RSI levels to understand underlying market momentum.
- Consider the potential for a bearish pullback if momentum does not strengthen.
- Follow market reactions to analyst predictions and regulatory changes.
On the other hand, if trading volume remains robust, Ethereum might break through the $3,900 resistance level. The outcome heavily depends on whether the volume can sustain an upward movement. Analysts believe that the full approval of the spot Ethereum ETF could provide the necessary momentum for ETH to surpass the critical resistance range of $3,900 to $4,000. Cheong’s prediction of reaching $4,500 hinges on overcoming this resistance and maintaining strong market momentum.
