In the past few days, Ethereum (ETH) has exhibited solid bullish momentum, with its price stabilizing above the $3,400 mark amid talks of a potential approval of spot Ether ETFs.
Essentially, the United States Securities and Exchange Commission is reported to have issued a ‘preliminary approval’ to at least three out of eight asset managers seeking to roll out their spot Ether ETFs. This anticipated move adds fuel to the whispers of ETF approvals to commence on July 23.
The ETF Connection
As noted in a Reuters report, the SEC’s permit currently rests on participants presenting their final pieces before this week’s deadline. Among the contenders were VanEck, Blackrock, and Franklin Templeton.
Not to be outdone, major players like ARK 21Shares, Bitwise, Fidelity, Grayscale, and Invesco are also set to reveal their highly awaited Ether ETF products. The report further added that all eight are anticipated to debut concurrently.
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Meanwhile, the price of the ETH exchanged hands at $3,450.95 at press time, marking a gain of 1.7% in the last 24 hours and 10% in the past week. With its price hovering between an intraday low of $3,339.80 and an intraday high of $3,498.22, ETH’s trading volume surged 48.05% to $20.028 billion, while its market cap sits at $409.648 billion.
ETH Price at Crossroads: Bulls’ Next Steps?
Despite these gains, the ETH token is presently facing resistance around the 61.8% Fibonacci level in the $3,484 zone. A breach above this zone could see ETH prices challenge the $3,518 level, seen on June 9, with the potential to reach March’s high around the $3,970 level. Should the ETH price reach this high, this would mark a 16.79% increase from its current price.
Technically, the 200-day simple moving average (SMA) corroborates ETH’s bullish sentiment as it trades below its price at $3,140. According to ETH price prediction, if the asset maintains its stance above the 200-day SMA, market optimism could persist, pushing ETH towards further gains in the long-term trend.
Moreover, the RSI tells a similar story as it trades above the neutral line. Currently positioned at 58.58, the RSI signals that there is ample space for an uptrend in the short term before reaching the overbought region. Market experts argue that this move could fuel ETH’s rally, potentially breaking through key resistance levels and reaching new highs in the coming weeks.
Contrastingly, supposing the $3,484 resistance proves formidable, ETH could see its price dip toward the $3,350 level for support before initiating another rally. A breach below this level could pull the token to a lower low of $3,200, which could trigger a buying spree for those seeking to capitalize on the dip.
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Also Read: Analyst Predicts Approval of 8 Spot Ethereum ETFs This Week
