Despite the focus on Bitcoin due to ETF excitement, attention is now shifting towards potential spot ETH ETFs. Even with losses in other altcoins, Ethereum (ETH) is seeing a price increase against Bitcoin (BTC) and the US dollar (USD). Currently, ETH is struggling to surpass the $2,450 resistance level, having recently rebounded sharply from the 50-day SMA at $2,232.
The market sentiment is positive as the decision on a spot BTC ETF is imminent, which could reduce selling pressure on ETH. If bulls can maintain the price above $2,400, a rally to $2,700 and even $3,000 is possible. Conversely, a rejection of the ETF or a sell-the-news scenario could lead to a decline towards $2,100.
A critical breakout is anticipated in the ETHBTC pair, which has been underperforming against BTC. After a strong recovery in the final week of last year, ETH’s gains were dampened, but it has now returned to the December 31st level.
ETH is currently challenging the middle of its trading channel against BTC and is showing promising signs with recent large bullish candles. If it can sustain above the middle of the channel, the key area of 0.05849 BTC could be reclaimed, aiming for a return to the September 30th peak of 0.06255 BTC and potentially targeting the 0.07 and 0.079 highs.
These targets align with the USD pair, suggesting a potential rise to $3,250 if the 0.079 BTC peak is reached. This optimistic scenario hinges on the market’s ability to maintain current support levels and bullish momentum.