Ethereum price has recently witnessed a significant upswing, climbing by 8.5% in just 24 hours and registering a 15% increase over the past week. This surge has propelled ETH past the $2,500 mark, a level not seen since May 2022. The momentum came after the Bitcoin spot ETF approval, sparking investor speculation about the imminent approval of Ethereum’s spot ETFs.
Source, Tradingview
Ethereum price fluctuated between $2,200 and $2,300 in the past few days, with buying and selling pressure struggling to establish a clear market direction. However, the market soon gained traction, allowing ETH to break free from this range; currently, ETH price is hovering at $2,641. Despite encountering resistance at $2,450 and experiencing a brief correction, the bulls regained control, pushing the price above $2,600.
Anticipation of Ethereum ETFs Fuels Market Optimism
The cryptocurrency market is optimistic following the historic approval of 11 Bitcoin spot ETFs on January 10, 2024. This development has heightened expectations for the approval of Ethereum spot ETFs later in the year. Bloomberg ETF analyst Eric Balchunas estimates a 70% chance of Ethereum ETF approval by May, further fueling market enthusiasm.
New deadline to obsess over just dropped
May 23rd is the final deadline for decision on VanEck’s spot ETH ETF pic.twitter.com/dgi5EVbPeQ
— Will (@WClementeIII) January 10, 2024
If the bulls maintain their momentum and push Ethereum past the $2,700 resistance level, the course could be clear for Ethereum price to test the $3,000 mark. Sustaining this level could set the stage for an attempt to breach the $4,000 resistance in the near future. Conversely, if bearish trends prevail, Ethereum could see a decline, testing support levels at $2,500 and potentially dropping to $2,450 by the weekend.
Ethereum Technical Indicators Point to Bullish Trends
Ethereum’s market behavior reinforces the bullish sentiment. The Moving Average Convergence Divergence (MACD) indicator shows a rising green histogram, signaling a dominance of buying pressure over selling. The MACD and signal lines are currently above the zero line, indicating bullish pressure. Additionally, the Chaikin Money Flow (CMF) indicator stands at a positive 0.42, suggesting a strong buying trend.
ETH/USD 4-hour price chart, Source: Tradingview
The four-hour technical indicators also support this bullish outlook. The Relative Strength Index (RSI) has crossed overbought territory, surpassing 70, indicating strong buying pressure. Furthermore, the 20 Exponential Moving Average (EMA) is positioned above the 50 EMA, confirming the market’s bullish dominance. Most of the moving averages and oscillators in the four-hour chart indicate buying pressure, suggesting a continued upward trend for the asset in the short term.
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