Ethereum price held the $3,200 mark, avoiding the fear of a further decline to $3,000. With the news of the upcoming spot Ethereum ETF to be listed in July, the market sentiment is expected to improve and may rebound to $4,000 or even higher in the same month.
Technical analysis shows potential positives
Ethereum price action is intriguing. A converging wedge pattern has formed within a large ascending triangle. Over the past month, the wedge has gradually narrowed, signaling an imminent breakout. Wedge patterns are usually bullish signals, with a high probability of an upward price breakout.
Currently, the price of Ethereum is below the 50-day moving average, but above the 200-day moving average, showing a stalemate between long and short positions. If the price breaks through the wedge, it may trigger a 20% increase and return to above $4,000. On the other hand, Ethereum also has a strong support level of around $3,000, which can play a supporting role.
Bitcoin's short-term volatility affects Ethereum's performance
Ethereum’s price lagging behind positive fundamental news may be related to Bitcoin’s recent trend, as the price of Bitcoin fell and some investors panicked as the cryptocurrency approached a dangerous support level.
Overall, there may be a cautious sentiment in the cryptocurrency market in the short term. If the Bitcoin price falls below the range between $60,198 and $62,252, it may further fall to the important support level near $50,000. But on the positive side, if Bitcoin can hold this support level and rebound, it may soon soar to $70,000.
Ethereum ETF is expected to bring upward momentum
Ethereum price action suggests a possible upside breakout is imminent, which is related to market expectations of an Ethereum ETF approval in July. Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), said the approval process for Ethereum ETFs is going smoothly. In an interview with another media outlet, he hinted that these ETFs will begin trading soon. The news has Ethereum investors excited, looking forward to a bull run in Ethereum and altcoins that could go down in the annals of cryptocurrency history.
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