ETH Price Gains Momentum Despite Inflation Concerns
The price of Ethereum (ETH) is experiencing notable gains as the new week begins, despite concerns over rising inflation in the United States. After briefly facing selling pressure over the weekend, the leading smart contracts token rebounded from support at $1,600 and is now trading at $1,630. This upward movement comes as bulls take advantage of improving market sentiment.
Bulls Take Control Amid Negative Market Pressure
Despite negative market pressure since June, when the SEC filed lawsuits against Binance and Coinbase and implicated various cryptocurrencies including Cardano (ADA), Solana (SOL), and Polygon (MATIC), ETH price has managed to maintain support above $1,530.
If the support area between $1,600 and $1,630 holds, Ethereum may consolidate with a upper limit around $1,700 before attempting a breakout towards highs above $2,000. The Moving Average Convergence Divergence (MACD) indicator suggests that sideways trading could prevail until ETH price breaks through the immediate resistance at $1,632.
Buy Signals and Technical Outlook
To identify potential buying opportunities, traders should look for a buy signal from the momentum indicator. New or additional buy orders can be placed above the 100-day Exponential Moving Average (EMA) once the blue MACD line crosses the red signal line on the four-hour chart. Sustained technical improvement is crucial for Ethereum to maintain stability in anticipation of possible approval of a futures-based ETH exchange-traded fund (ETF) in the US.
Potential Impact of a Futures-Based ETF Approval
Market experts believe that while a futures-based ETF may not directly impact Ethereum’s spot price, it would demonstrate regulatory willingness to license crypto products. In 2021, Bitcoin experienced a significant rally of over 60% following the approval of a similar product, which contributed to the previous bull run. If the futures-based ETF for Ethereum receives approval, it is expected to outperform Bitcoin in terms of price performance.
Positive On-Chain Insights and Demand for ETH
Analytics platform Santiment has shared fundamental insights indicating that the supply of Bitcoin and Ethereum on exchanges is decreasing as traders choose to hold their assets. This reduction in supply can lead to increased demand, creating favorable conditions for an ETH price rally. Additionally, large volumes of Tether (USDT), the largest stablecoin, are being moved into exchanges, suggesting growing interest in buying Ethereum if the SEC approves the futures-based ETF in October.
Hot Take: ETH Price Holds Strong Amid Inflation Concerns and Potential ETF Approval
Ethereum’s price resilience amidst concerns over rising inflation in the US and the potential approval of a futures-based ETF demonstrates its strength in the market. Despite negative pressure and legal actions against major crypto exchanges, ETH has maintained support levels and is now showing signs of upward momentum. Traders should pay attention to technical indicators for potential buying opportunities. The approval of a futures-based ETF could further boost Ethereum’s price performance and solidify its position as a leading cryptocurrency.
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