Ethereum Price Analysis: ETH Rebounds 3% as Spot ETF Concerns Ease

Ethereum Price Analysis: After a significant surge on Monday, Ethereum traded sideways for the remainder of the week. This lo of momentum was likely due to the realization that ETF issuers must wait for the approval of their S-1 registration statements before trading can begin, which could take several weeks or even months. Currently, the ETH price is stabilizing above $3600, preparing for its next move.

Also Read: Ethereum ETFs May Propel ETH to Record Highs, Says Bitwise CIO

Ethereum Price Analysis: Key Levels to Watch in the Coming Weeks

The second half of May has been strongly bullish for the Ethereum coin showcasing a price rally from $2860 to $3862 registering a 35% jump. This rally was initially triggered by Bitcoin uplifting the broader market sentiment but later witnessed higher momentum as US Sec approved spot Ethereum ETFs.

James Seyffart, a Bloomberg ETF analyst, has projected that the demand for spot Ethereum ETFs could reach between 20% to 25% of the demand observed for spot Bitcoin ETFs. His analysis takes into account the current market size of Ethereum, which stands at approximately 30% of Bitcoin’s market size. 

https://twitter.com/WuBlockchain/status/1794386721423171670?ref_src=twsrc%5Etfw” rel=”nofollow

Seyffart also highlighted some inherent limitations in Ethereum ETFs, including the inability to stake tokens and the lack of on-chain utility that could be leveraged through such financial products. 

Thus, the ETH price witnessed high volatility this week wavering above the $3600 level. If the support holds, the buyers are likely to challenge the $4090 resistance, in the coming week or two.

A potential breakout will accelerate the bullish momentum and chase a potential target of $4500, followed by $4900.

Technical Indicator

• Exponential Moving Average: The coin price above daily EMAs(20, 50, 100, and 200) indicates the broader trend remains strongly bullish.
• Average Directional Index: The ADX slope at 33% indicates the ongoing may need an occasional pullback to replenish the exhausted recovery momentum.

Related Articles

• Crypto Market Prediction: Will Bitcoin Hit New High Before May End?
• Global Bitcoin ETF Close To Stacking 1M BTC, Bullish For BTC Price?
• Protect Crypto Value From Cannibalization With BluestoneMining