As a researcher with experience in analyzing cryptocurrency markets, I believe that the imminent launch of Spot Ethereum ETFs could lead to a bullish short-term price movement for $ETH. However, it’s also possible that we might see a brief dip back down to around $3,000 before the price rises again.
As the anticipated launch of Spot Ethereum ETFs approaches within the next couple of months, will the Ethereum ($ETH) price surge in advance, or is a revisit to $3,000 on the cards prior to this event?
As a researcher studying the financial markets, I can share that Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), has announced recently that approved Spot Ethereum Exchange-Traded Funds (ETFs) will commence trading this summer. With June already halfway over, we’re looking at a timeline within the next few months for these ETFs to start trading on various exchanges.
What’s in store for the $ETH price?
The price of Ethereum ($ETH) has risen by 1.3% on this Friday, outpacing many other cryptocurrencies. Bitcoin ($BTC), meanwhile, remains relatively sluggish and has barely entered positive territory, suggesting that the near-term growth for Ethereum has gained an early momentum.
Bullish short term price action
On the 4-hour chart, the Ethereum price has hit a support level at $3,430. There’s a potential W pattern emerging, and if this pattern breaks out, it might align with a break of the bearish trend line. Based on the measured move, the price could then retrace back to where the downtrend began, around $3,800.
Is a move back to $3,000 possible?
Based on the analysis of the daily time frame, it seems that if a price breakdown occurs, the market may need to retrace and potentially reach the 0.618 Fibonacci level, which is roughly around the current price. Furthermore, there’s a possibility that the price could even retreat back to the 0.786 Fibonacci level, approximately at $3,000.
Lower, but then up to $5,000
The weekly graph provides a more definitive viewpoint. The Fibonacci levels align seamlessly with resistance points, and the prices at $3,300 and $3,000 exhibit significant differences.
By examining the price history to the left, the 0.786 Fibonacci level appears to align most effectively with the support level at $3,000. Should this correction occur, it would result in a higher low being formed, possibly marking the final leg of an expansive W-shaped pattern. If this pattern holds true, the Ethereum price could reach new heights, potentially reaching up to $5,000.
During the course of this Ethereum bull market, if we trace out Fibonacci levels for the entire price movement up until now, it becomes apparent that the corrective phase from mid-March to the end of April aligns perfectly with the 0.382 Fibonacci level. It’s unlikely that the price will fall below this point presently.
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2024-06-14 14:28