Cryptocurrency markets saw a renewed influx of volume on Monday as rumors of an Ethereum spot ETF being approved hit major cryptocurrency news platforms. Following the approval rumors, ETH surged 29%, reaching a high of $3,950 before retracing. However, Ethereum’s momentum slowed down significantly even after the official announcement of the approval of the ETH ETF. We will analyze the Ethereum price outlook and assess whether ETH can still reach $4,500 before June.
Ethereum Price Analysis: Bullish Trend Following ETF Approval
The recent Ethereum (ETH) price rally and subsequent consolidation has led to a bull flag. The bulls are expected to push the price even higher after this short resting phase.
Currently, ETH is trading at $3,752, down 1.30% according to CoinMarketCap. The price is maintained above 50- and 200-day simple moving averages (SMA) (in blue and orange), reinforcing bullish sentiment.
Key resistance levels to watch include $3,950, $4,097 and $4,400. If the market is hit by bad news, ETH prices could fall. Key support levels to watch would be $2,864 and $2,400.
Gabriel Shapiro, a cryptocurrency lawyer, posted his views on ETH price movements following theETF approval.
According to Shapiro, the price of ETH is not increasing because only Forms 19b-4 were approved and not S-1s. Form 19b-4 focuses on rule changes proposed by self-regulatory organizations, while the S-1 is used to register securities in preparation for an initial public offering (IPO).
This type of approval can be challenged in the next 10 days and could result in revocation of approval.
Shapiro believes that this decision by the SEC was purely political and that the crypto community should not expect approval of S-1s anytime soon. This explains why market sentiment around the ETF approval is not as explosive as for Bitcoin.
Ethereum Price Prediction
Ethereum price on the daily chart indicates a strong breakout from the previous descending wedge. Although momentum has faded, Ethereum fundamentals remain strong. He therefore has a strong chance of re-test the $4,000 threshold soon.
However, in a reverse scenario, bears could fall back to $3,400 before climbing back towards ETH’s previous all-time high of $4,097 reached last March.
Will the ETH price reach $4500 before June?
In summary, the approval of Ethereum spot ETFs in the United States has generated a lot of excitement in the cryptocurrency market. THE initial rally has calmed downleaving some investors wondering if ETH can still reach $4,500 before June.
Our Ethereum price analysis shows that despite the fading momentum, Ethereum fundamentals remain strong. The ETH chart indicates a strong bullish breakout, and bulls could push the price even higher after a short consolidation phase.
However, investors should stay vigilant. As for key support and resistance levels and be ready to adjust their strategies based on changing market sentiment. With prudent risk management and a clear understanding of market dynamics. Investors can navigate the volatile cryptocurrency environment and potentially make significant gains during this time. bull run.
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