Ethereum Price: 2 Reasons Why ETH Price is Rising ?

Technology

As the Ethereum ETF Rally Cools, Can ETH Still Break $4,500 Before June? – Crypto News

Published

2 years ago

May 24, 2024

Dripp

Ethereum price analysis: On Monday, the crypto markets witnessed a renewed influx of volume as rumors of a spot Ethereum ETF approval hit the mainstream crypto news platforms. Following the rumors of the approval, ETH surged 22%, topping at $3,947 before retracing back.

On May 24, 2024, the Securities and Exchanges Commission (SEC) approved eight-spot Ethereum ETFs in an omnibus order. However, Ethereum’s momentum has slowed significantly, even after the official ETH ETF approval news.

Ethereum Price Analysis: ETH Chart Remains Bullish Post Ethereum ETF Approval News

ETH price chart | TradingView

The recent Ethereum price surge and subsequent consolidation have led to a bullish flag. Bulls are expected to push the price even higher after this short resting phase.

Currently, ETH is trading at $3,705, according to CoinMarketCap. The price holds steady above the 50-day and 200-day simple moving averages (SMAs), reinforcing the bullish sentiment.

Key resistance levels to watch include $3,947, $4,067, and $4,405. Should the market get hit by bad news, ETH prices could tumble downward. Key support levels to keep under watch would be $2,676 and $2,338.

Gabriel Shapiro, a crypto attorney, posted his insight into the weird case of Ethereum price action following the ETF approval.

According to Shapiro, the ETH price is not rising because only the 19b-4s forms were approved and not the S-1s. The 19b-4s form focuses on rule changes proposed by self-regulatory organizations, while the S-1s is used for registering securities in preparation for an initial public offering (IPO).

This type of approval can be contested in the next 10 days and could result in revocation of the approval.

Attorney Shapiro weighs in that this move by the SEC was purely political and the crypto community should not expect an S-1s approval soon.

alpha on why ETH isn’t mooning:
–>only 19b-4s approved, not S-1s
–>approval was by division of trading/markets on ‘delegated authority’
–>means a commissioner can challenge in next 10 days (also means they are trying to hide the vote b/c it’s political)

what’s really going…

— _gabrielShapir0 (@lex_node) May 23, 2024

This explains why the market sentiment around the ETF approval is not as explosive as it was for Bitcoin.

ETH Price Prediction

Ethereum price chart | TradingView — Ethereum ETH chart | TradingView

The Ethereum price on the daily chart indicates a strong breakout from the previous falling wedge. While the momentum has tapered off, Ethereum fundamentals are still strong.

However, in an inverse scenario, bears could retreat to $3,400 before moving higher toward ETH’s previous all-time high price.