Ethereum Soars Amid Rumors of Spot ETH ETF Approval
At the end of May, Ethereum experienced a significant surge in price, jumping from the $3,000 range to reach $3,900. This bullish momentum was fueled by rumors of a potential spot ETH ETF approval in the United States. Since the approval, the second-largest cryptocurrency has performed well, consolidating between $3,700 and $3,800 levels. Some analysts are optimistic about Ethereum’s future, with bullish projections of the token surpassing the $10,000 mark in the near future.
Ethereum’s Potential Breakout Depends On Key Level
According to Jelle, a crypto analyst, there is currently a negative sentiment surrounding Ethereum within the community. This bearish outlook is partly due to Ethereum’s struggle to reclaim the $4,000 resistance level. Jelle advises investors not to panic and stresses that there is no need to adopt a bearish stance at this point. The analyst highlights key developments in Ethereum’s performance over the past couple of weeks:
- Ethereum broke out of a multi-month falling wedge pattern following the spot ETH ETF approval.
- The token successfully reclaimed the $3,600 support level and briefly tested $3,900.
- Since then, Ethereum has been consolidating between $3,700 and $3,800, indicating a positive trend in the market.
As per Jelle’s analysis, Ethereum is on track to reclaim the range lows from a 3-year reaccumulation period. The analyst’s chart suggests that if Ethereum maintains its position above this crucial level, it could pave the way for significant growth, potentially leading to a “glorious year” for the cryptocurrency.
Jelle also notes that Ethereum’s final obstacle in this cycle is surpassing the $4,000 resistance level. Once this milestone is achieved, Ethereum could see clear skies ahead, with a possible target of $10,000 within reach.
Similarly, another crypto analyst, Il Capo of Crypto, has expressed optimism about Ethereum’s price action, highlighting a bullish continuation above the $3,650 range. This positive performance sets Ethereum on a path towards the previous all-time high from the previous market cycle.
Will Ethereum ETFs Propel the Cryptocurrency to New Heights?
Despite some uncertainties, Ethereum’s recent performance mirrors patterns seen in Bitcoin’s previous cycles. According to crypto trader Ash, Ethereum is following a trajectory similar to Bitcoin’s trend from 2018 to 2021, which could potentially lead to Ethereum surpassing $10,000.
Many market participants are eagerly anticipating the approval and listing of a spot ETF for Ethereum, which some analysts believe could trigger an explosive alt season in the crypto market. Recent data suggests that over 777,000 ETH, valued at around $3 billion, have been withdrawn from exchanges following the SEC’s approval of investment products tied to Ethereum, resulting in a supply squeeze that may drive prices higher.
However, concerns have been raised about a large ETH deposit made by two participants in Ethereum’s ICO, who recently moved a significant amount of their holdings to a crypto exchange. While this move has caused some alarm among investors, there are also speculations that these long-term holders are anticipating a surge in Ethereum’s price in the near future.
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