ETH Rebounds 3% as Spot ETF Concerns Ease – Crypto News – Crypto News
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How Will ETH Trade Ahead Of Spot Ethereum ETF Decision? How Will ETH Trade Ahead Of Spot Ethereum ETF Decision?

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ETH Rebounds 3% as Spot ETF Concerns Ease – Crypto News

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Ethereum Price Analysis: After a significant surge on Monday, Ethereum traded sideways for the remainder of the week. This lo of momentum was likely due to the realization that ETF issuers must wait for the approval of their S-1 registration statements before trading can begin, which could take several weeks or even months. Currently, the ETH price is stabilizing above $3600, preparing for its next move.

Also Read: Ethereum ETFs May Propel ETH to Record Highs, Says Bitwise CIO

Ethereum Price Analysis: Key Levels to Watch in the Coming Weeks

BINANCE:ETHUSD Chart
Ethereum Price Analysis| Tradingview

The second half of May has been strongly bullish for the Ethereum coin showcasing a price rally from $2860 to $3862 registering a 35% jump. This rally was initially triggered by Bitcoin uplifting the broader market sentiment but later witnessed higher momentum as US Sec approved spot Ethereum ETFs.

James Seyffart, a Bloomberg ETF analyst, has projected that the demand for spot Ethereum ETFs could reach between 20% to 25% of the demand observed for spot Bitcoin ETFs. His analysis takes into account the current market size of Ethereum, which stands at approximately 30% of Bitcoin’s market size. 

Seyffart also highlighted some inherent limitations in Ethereum ETFs, including the inability to stake tokens and the lack of on-chain utility that could be leveraged through such financial products. 

Thus, the ETH price witnessed high volatility this week wavering above the $3600 level. If the support holds, the buyers are likely to challenge the $4090 resistance, in the coming week or two.

A potential breakout will accelerate the bullish momentum and chase a potential target of $4500, followed by $4900.

Technical Indicator

  • Exponential Moving Average: The coin price above daily EMAs(20, 50, 100, and 200) indicates the broader trend remains strongly bullish.
  • Average Directional Index: The ADX slope at 33% indicates the ongoing may need an occasional pullback to replenish the exhausted recovery momentum.

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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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