Ethereum Price Analysis: Will ETF Uncertainty Push $ETH Below $2700?

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As a researcher with a background in cryptocurrency analysis, I’ve been closely monitoring the Ethereum price movements for quite some time. The current sideways trend of Ethereum, which has persisted for nearly a month now, is an intriguing development that warrants further investigation.

As a crypto investor, I’m observing a notable increase in Ethereum‘s price, which currently hovers around $2935, representing a $0.82 surge. This upward movement suggests another reversal from the support area of approximately $2875-$2850, marking potentially the fourth price reversal within a month. The active demand zone has thwarted a significant correction in Ethereum, causing the price trend to sway sideways rather than plunging further. However, it’s difficult to predict exactly how long this consolidation will last.

Ethereum Price Analysis: Is ETH Price Ready to Hit $4100?

Ethereum Price Analysis: Will ETF Uncertainty Push $ETH Below $2700?

As an analyst, I’ve noticed that Ethereum’s price has been ranging between the two horizontal support levels of $2850 and $3300 for almost a month now. The coin’s price has bounced back multiple times from these levels, suggesting market participants are uncertain about their next move.

If the consolidation persists, I’d be keeping an eye on the Ethereum price reaching the downward slanting trendline of a falling wedge chart formation. This trendline has guided the ongoing correction for more than two months now.

If the electrical connection at this resistance level remains strong, then a potential rebound is likely to enhance the availability of Ethereum supply in the market, thereby supporting its decline for an extended period. However, the bearish perspective will gain more influence if buyers fail to defend the $2850 price floor.

The potential breakdown will plunge the Ethereum price to $2700, followed by $2600.

In a recent exchange on Twitter, Eric Balchunas, a Bloomberg senior ETF analyst, commented on the latest update concerning ARK Invest and 21Shares’ application to exclude staking in their proposed Ethereum (ETH) spot ETF. Balchunas suggested that this modification could bring the ETF application closer to SEC regulations, which might be seen as a promising indication. However, it is essential to note that no formal communication from the SEC regarding this matter has been disclosed yet.

As a researcher, I find it intriguing that the company appears to be preparing its documents based on potential Securities and Exchange Commission (SEC) comments, although no such comments have been made public yet. It could signify positive progress in response to SEC feedback, or perhaps an attempt to minimize any potential issues for the regulator to use in a possible rejection. I’ll continue monitoring this situation closely for further developments.

— Eric Balchunas (@EricBalchunas) May 10, 2024

He conveyed doubt over whether this alteration represented a calculated maneuver aimed at thwarting the SEC’s potential objections or a desperate attempt to secure approval, characterizing it as “either a longshot or an effort to take away one more reason for rejection from the SEC.”

As an analyst, I’d observe that the market remains hesitant regarding the U.S. Securities and Exchange Commission (SEC) decision on Ethereum-based Exchange Traded Funds (ETFs). However, from a technical standpoint, a potential breakout above the wedge pattern could ignite optimistic sentiment among investors.

If the price breaks through the current resistance represented by the trendline above, it could fuel a strong surge in buying pressure, potentially pushing the price up to $4100.

Technical Indicator

    BB Indicator: The ETH price pressuring the lower boundary of Bollinger Band on the downside indicates the selling pressure is active.
    Moving Average Convergence Divergence: Multiple crossovers between the MACD (blue) and signal (orange) lines accentuate the uncertain market sentiment.

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2024-05-12 18:52