Ethereum (ETH) has recently seen a significant price surge, crossing $2,500 with an over 16% increase in the past week. This momentum follows the approval of spot Bitcoin ETFs, sparking speculations that spot Ethereum ETFs might soon receive approval as well.
The cryptocurrency market is optimistic after the approval of 11 spot Bitcoin ETFs in the United States on January 10, 2024. Bloomberg ETF analyst Eric Balchunas predicts a 70% chance of an Ethereum ETF approval by May, fueling market excitement.
If bulls maintain their momentum and push Ethereum past the $2,700 resistance level, the path to testing $3,000 could open up, potentially setting the stage for a short-term attempt to surpass the $4,000 resistance.
However, if the upward momentum is not sustained, Ethereum could face a pullback to $2,500 or even $2,450.
Technical indicators strengthen the bullish outlook for Ethereum. The Moving Average Convergence Divergence (MACD) shows a rising green histogram, indicating dominant buying pressure. The Chaikin Money Flow (CMF) indicator is also positive, signaling strong buying interest. Four-hour technical indicators, including the Relative Strength Index (RSI) surpassing 70 and the 20-day Exponential Moving Average (EMA) above the 50 EMA, confirm the asset’s short-term bullish trend.