Ethereum Soars Past $3,500, ETFs Approved

Published on: Jul 16, 2024|4 min read

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London: 16 July 2024 (TraderMade): Ethereum (ETH) has once again demonstrated its market strength, surging past the $3,500 mark.

This bullish momentum has traders and investors wondering if this is just the beginning of a larger upward trend, especially with the recent approval of Ethereum exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC).

Key Takeaways

Ethereum price surges past $3,500, signalling robust bullish momentum.
SEC approves Ethereum ETFs, set to launch on July 23.

Ethereum Shows Resilience, Tests $3,500

Ethereum's recent price action has been impressive. The cryptocurrency has broken through the $3,350 resistance zone, climbing to test the $3,500 level. Currently, ETH is trading above $3,350 and the 100-hourly Simple Moving Average (SMA), signalling a robust bullish trend.

A key bullish trend line is developing with support on the hourly ETH/USD chart at $3,320. This suggests that the price is well-supported at lower levels and poised for further gains.

SEC Approval of Ethereum ETFs

The SEC has approved the launch of spot Ethereum ETFs officially, with trading set to begin on July 23. Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, confirmed the development via an X post, noting that issuers must finalize their S-1 documents by Wednesday.

This approval is expected to drive significant investment into Ethereum, further boosting its price.

Anticipated Inflows and Market Impact

The introduction of spot Ethereum ETFs is expected to attract substantial investment. Crypto exchange Gemini predicts these ETFs could see inflows of up to $5 billion within the first six months.

Steno Research forecasts potential inflows of up to $20 billion within the first year of trading. This level of investment could significantly enhance Ethereum's market presence and adoption.

Bulls in Action: Ethereum Price Climbs 10%

The recent surge began with Ethereum breaking past the $3,250 resistance zone, followed by a swift move above the $3,350 resistance, propelling it into a positive trading zone. This upward momentum mirrors Bitcoin's recent performance, with ETH eventually testing the $3,500 resistance zone.

A high was recorded at $3,497, and the price is currently consolidating these gains. The bulls are maintaining their presence above the 23.6% Fibonacci retracement level. This level corresponds to the upward wave from the $3,085 swing low to the $3,497 high.

Ethereum continues to trade above $3,400 and the 100-hourly SMA, reinforcing the bullish sentiment.

Upside Potential: Eyeing Higher Resistance Levels

Ethereum's price faces immediate resistance at the $3,480 level, with the first significant barrier at $3,500. Overcoming this hurdle could set the stage for further gains, with the next major resistance at $3,550. A close above this level might propel Ether towards the $3,650 resistance.

Looking further ahead, breaking through the $3,720 resistance could push Ethereum higher, aiming for the $3,880 resistance zone in the coming days.

Are Dips Limited in ETH?

Despite the bullish outlook, there is always the possibility of a downside correction if Ethereum fails to clear the $3,500 resistance. Initial support on the downside is near $3,400, with the first major support around the $3,320 zone and the trend line.

A clear drop below the $3,320 support level could push the price down to $3,270. It might also reach the 50% Fibonacci retracement level of the upward move from the $3,085 low to the $3,497 high.

Further losses might see the price approaching the $3,220 support level in the near term, with the next key support at $3,150.

Technical Indicators for Ethereum

Hourly MACD: The MACD for Ethereum (ETH/USD) is displaying a decrease in bullish momentum.
Hourly RSI: The RSI for Ethereum (ETH/USD) remains above 50, indicating sustained bullish momentum.
Major Support Level: $3,320
Major Resistance Level: $3,500

Ethereum's recent performance showcases its potential for further gains, but traders should remain vigilant of potential support levels in case of a downside correction. The coming days will be crucial in determining whether ETH can sustain its upward trajectory and achieve new highs.

With the SEC's approval of Ethereum ETFs, the cryptocurrency market could be on the brink of significant growth and stability, marking another step towards mainstream acceptance and institutional investment.