ETH Bounces Back 3% as Worries about Spot ETFs Diminish

Ethereum Price Analysis: ETH Prepares for Next Move Above $3600

Ethereum Price Analysis: After a significant surge on Monday, Ethereum traded sideways for the remainder of the week

After a notable surge earlier in the week, Ethereum’s price has stabilized above $3600 as traders await the approval of S-1 registration statements for ETF issuers. This delay in trading approval could take several weeks or even months, leading to a lack of momentum in the market.

The second half of May saw a strong bullish trend for Ethereum, with the coin rallying from $2860 to $3862, a 35% increase. This rally was initially driven by Bitcoin’s positive market sentiment and further boosted by the approval of spot Ethereum ETFs by the US SEC.

Analysts like James Seyffart from Bloomberg project that the demand for spot Ethereum ETFs could reach 20% to 25% of the demand seen for spot Bitcoin ETFs, considering Ethereum’s market size is around 30% of Bitcoin’s.

Despite the potential for Ethereum ETFs, there are limitations such as the inability to stake tokens and lack of on-chain utility. This has led to high volatility in ETH price this week, hovering above $3600. If the support holds, buyers could challenge the $4090 resistance in the coming weeks, with a breakout potentially targeting $4500 and $4900.

Technical Indicator

The Exponential Moving Average shows the coin price above daily EMAs (20, 50, 100, and 200), indicating a strong bullish trend. The Average Directional Index suggests that the market may need occasional pullbacks to maintain momentum.


Related articles


Please enter your comment!
Please enter your name here