In the last 24 hours, Ethereum (ETH) has surged by 4.2%, reaching $3,472. This upward movement is attributed to the U.S. Securities and Exchange Commission’s (SEC) preliminary approval of three out of eight proposed spot ETH Exchange-Traded Funds (ETFs). These ETFs are expected to begin trading next Tuesday, sparking optimism in market sentiment and pushing the ETH price higher. Market participants are now eyeing potential further gains.
Ethereum’s Technical Indicators Surge
Ethereum recently dipped to $2,811 amid a market-wide downturn but has been recovering as Bitcoin leads the way. On a 4-hour chart, Ethereum has completed a double bottom formation at $3,484. The key question is whether ETH can break through this resistance or retreat to around $3,300. The altcoin is currently trading above its 21-day, 50-day, and 200-day Simple Moving Averages (SMA), indicating sustained upward momentum.
Several technical indicators suggest a bullish outlook for ETH. The Chaikin Money Flow (CMF) is at 0.04 and rising, showing increased buying interest. The Relative Strength Index (RSI) has crossed above the midpoint to 59.37, signaling stronger bullish momentum. Similarly, the Moving Average Convergence Divergence (MACD) indicator confirms a shift from bearish to bullish sentiment.
What Impact Will Spot ETH ETFs Have?
The SEC’s preliminary approval of spot ETH ETFs is a pivotal factor in Ethereum’s recent price rebound. Bloomberg ETF expert Eric Balchunas predicts these ETFs will start trading on July 23. This has led to widespread speculation about substantial inflows into ETH, potentially driving its price even higher. The launch coincides with the Bitcoin 2024 conference in Nashville, possibly diverting attention from Bitcoin to Ethereum.
Key Insights for Investors
- ETH’s price is closely tied to the SEC’s ETF decisions.
- Key resistance levels to watch are $3,570 and $3,800.
- Support may be found around $3,350 if bearish trends prevail.
- Technical indicators like CMF, RSI, and MACD suggest bullish momentum.
- Trading volume and open interest in ETH are increasing, signaling growing investor interest.
The optimism surrounding the approval of spot Ethereum ETFs is raising expectations for a potential parabolic rally. With market participants anticipating significant inflows, the total open interest for ETH across exchanges has risen by 1.5%, with most of these inflows driven by perpetual contracts. This positive sentiment could further solidify Ethereum’s upward trajectory.