As an experienced crypto investor, I’ve seen my fair share of price swings and trends in the Ethereum market. The recent relief rally from $2815 to $3196 in just one week was a welcome sight after a prolonged correction period. However, the mid-term trend indicates a consolidation phase with a potential for further correction if the bullish momentum fades.
In the second week of July, Ethereum price analysis revealed a new surge in value, marking a relief rally. This bullish shift propelled the asset from its monthly support at $2825 to reach $3196, resulting in a weekly increase of 13.2%. The uptrend was instigated by investors’ heightened anticipation for the potential approval of Ethereum-based ETFs in the upcoming week. This recovery came as a respite from the broader market’s supply pressures. Could this correction be coming to an end?
Ethereum Price Analysis: Will Spot ETH ETF Approval Propel ETH to $4000?
From the Ethereum price perspective, the intermediate pattern indicates a horizontal movement in the daily graph. The creation of a fresh peak at $3974 and subsequently repeating a bottom at $2815 hints that the ETH value is preparing for a period of consolidation to restore waning bullish energy.
In the past week, the price of the asset has surged from $2815 to reach $3191 following a shift in trend around the $2815 support. This surge has also resulted in an increase in the asset’s market capitalization to a staggering $383.5 billion. However, the decreasing trading volume during this upswing indicates waning enthusiasm among investors for opening new long positions.
The hesitance of buyers to commit to higher prices indicates that the Ethereum recovery may not be lasting and could lead to a deeper price decrease. If ETH‘s price falls below the downward-sloping blue trendline, sellers might test the $2815 support level once more, intensifying the ongoing correction.
The potential breakdown could accelerate the supply pressure and push the asset to $2400.
An approved ETH spot ETF might shift the market sentiment if it happens, contradicting the current bearish outlook.
Nate Geraci, President of the ETF Store, has tweeted that the Securities and Exchange Commission (SEC) is handling Ethereum spot ETF S-1 filings in a manner similar to their treatment of 19b-4 filings. This approach is characterized by substantial discretion. Geraci remains hopeful about the upcoming approval, predicted for next week, stressing that there is no valid rationale for any further delay.
It appears the SEC is playing the spot eth ETF S-1s similar to the 19b-4s…
*Extremely* tight-lipped.
Still think approval next week. Absolutely no reason for delay.
— Nate Geraci (@NateGeraci) July 12, 2024
Approval of this potentiality might fuel increased purchasing activity and drive the Ethereum price projection beyond $4000.
Technical Indicator
- EMAs: The 20-day and 50-day Exponential Moving Averages (EMAs) serve as dynamic resistance levels during a bullish upswing, signaling a strong downward momentum in progress.
- RSI: The Relative Strength Index (RSI) reverted to 45% indicating a neutral sentiment among market participants.
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2024-07-14 21:39