Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Ethereum Eyes $4,800 on ETF Hopes: How to Trade the Potential Surge

Published 23/05/2024, 11:39

Cryptocurrency markets are off to a hot start this week, building on last week's recovery signs. While Bitcoin flirted with the $70,000 mark again, Ethereum has been the true star.

Ethereum has skyrocketed 25% since the beginning of the week, clawing back significant losses incurred since March. This surge is fueled by escalating rumors that the SEC might finally approve a spot Ethereum ETF. In recent months, Ethereum has been in a downtrend due to concerns about delayed spot ETF approvals.

Our previous analysis of Ethereum identified a falling triangle pattern dictating its price action. The support line, holding firm since April around $2,800-$2,900, formed the triangle's base. The downtrend continued through the first half of May, squeezing the ETH price.

Last week, buyers successfully defended the support level, propelling Ethereum back above $3,000. This price action signaled a bullish breakout from the falling triangle pattern.

SEC Decision Looms Large: Key Levels to Watch

Ethereum's breakout is likely to continue, potentially reaching the $3,800 region based on the previous downtrend and the falling triangle pattern's measurement. Looking at Fibonacci retracement levels, resistance is expected around Fib 0.786, translating to $3,830. Conversely, the closest support lies at Fib 0.618, or $3,630.

The SEC is set to announce its final verdict on VanEck's application, the first for an ETH ETF. A positive decision is expected to trigger immediate bullish sentiment. If Ethereum breaks past the $3,800 resistance, it could potentially climb toward the Fibonacci expansion zone of $4,400-$4,800. The $4,090-$4,100 range could act as intermediate resistance on this upward trajectory.

ETH/USD Price Chart

How to Trade Ethereum Ahead of SEC Decision

The Ethereum market has been in a holding pattern for the past three days. The key level to watch for support sits at $3,630. If selling pressure intensifies and Ethereum breaks below $3,600, further support levels could come into play at $3,480, $3,350, and $3,170.

On a brighter note, the recent passage of a crypto-friendly bill by the U.S. House of Representatives injected some optimism into the market. This bill signifies a positive step towards establishing a regulatory framework for the world's largest crypto market. However, its impact remains uncertain as the SEC has voiced opposition, and the Biden administration also has some reservations.

Today's decision from the SEC on Ethereum spot ETFs has become a major focal point for Ethereum and related altcoins. The market generally expects a green light, and recent buying activity suggests support for this move. Nevertheless, the crypto market is known for its volatility, so close attention to support and resistance levels is essential.

While most anticipate the SEC's approval, the possibility of a surprise decision can't be ruled out. Keeping a close eye on key support and resistance levels will be crucial for informed trading decisions in this uncertain environment.


Take your investing game to the next level in 2024 with ProPicks

Institutions and billionaire investors worldwide are already well ahead of the game when it comes to AI-powered investing, extensively using, customizing, and developing it to bulk up their returns and minimize losses.

Now, InvestingPro users can do just the same from the comfort of their own homes with our new flagship AI-powered stock-picking tool: ProPicks.

With our six strategies, including the flagship "Tech Titans," which outperformed the market by a lofty 1,745% over the last decade, investors have the best selection of stocks in the market at the tip of their fingers every month.

Subscribe here and never miss a bull market again!

Subscribe Today!

Don't forget your free gift! Use coupon codes OAPRO1 and OAPRO2 at checkout to claim an extra 10% off on the Pro yearly and bi-yearly plans.

Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple points of view and is highly risky and therefore, any investment decision and the associated risk remains with the investor.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.