When Is ETH Price Likely To Hit $5,000 Following Ethereum ETF Approval?
Ethereum experienced a lifeline-changing moment last as the Securities and Exchange Commission (SEC) in the US pivoted towards spot ETFs. The hype around Ethereum ETFs exploded early last week backed by Bloomberg analyst Eric Balchunas, after he revised his prediction from 25% to 75%. Following the approval news, ETH price rallied but continued to trade below the $4,000 mark.
Ethereum boasts a 5% premium in seven days on top of a 17% increase in a fortnight. The smart contracts token remains relatively unchanged in the last 24 hours, hovering at $3,903 on Tuesday, CoinGecko data reveals.
Despite the lock-step trading, a spike in the trading volume to $18.5 billion, reinforces growing investor interest.
What Does Ethereum ETF Approval Mean For ETH Price
The approval of Ethereum ETFs is an optimistic step for the second-largest crypto. ETFs expose ETH to a larger more traditional audience while opening the asset to long-term prospects.
According to research firm Kaiko, “the ETF approval removes significant regulatory uncertainty, boosting ETH’s long-term performance.”
The green light laid the foundation for spot Ethereum ETFs, however, based on JP Morgan’s insight, the actual trading could start before November. ETFs allow investors to seek exposure to cryptocurrencies directly on stock exchanges, in the same manner as Bitcoin ETFs.
Despite the waiting period in which the SEC will vet every operator individually, the approval implies Ethereum is on the verge of a major bull run.
Assessing Ethereum’s Technical Structure And Potential For Breakout
Ethereum price prediction shows Ether sitting above crucial levels on the daily chart, starting with higher support established at $3,600 and $3,800. The Moving Average Convergence Divergence (MACD) reinforces the bullish thesis, thus increasing the chance of the next move above $4,000.
A recently confirmed golden cross, formed by the 20-day Exponential Moving Average (EMA) crossing above the 50-day EMA (in red) is also another bullish signal to consider when buying ETH.
ETH price chart | Tradingview
Some investors are likely sitting on the periphery, waiting for another confirmation of a breakout. A daily close above $3,900 will back the uptrend and affirm the bull’s strong presence in the market.
An additional ascend above $4,000 could ignite FOMO as more investors bet on higher prices and a new record high past $5,000.
Nevertheless, a potential double-top pattern around $4,100 could send ETH price spiraling under $4,000. However, if successfully broken, a massive rally has the potential to follow targeting $5,000.
For now, dips seem very profitable. Therefore, using the best dollar cost averaging (DCA) strategy could allow investors to grow their holdings and subsequently maximize profits in the future.
The post When Is ETH Price Likely To Hit $5,000 Following Ethereum ETF Approval? appeared first on CoinGape.
Filed under: News - @ May 28, 2024 1:27 pm