SEC Chair Gary Gensler noted that the approval process for the spot Ethereum ETF is progressing smoothly.
Ethereum struggles to break $3,500, trading flat in the $3,300 range.
The focus on the crypto market currently shifted towards anticipation surrounding spot Ethereum ETFs. Analysts predict initial inflows of up to $15 billion, sparking interest and speculation across the market. But the market has been fluctuating, with Ethereum experiencing a significant sell-off on Monday followed by a swift recovery on Tuesday. As of Today, June 27, Ethereum’s price stood at $3,371, reflecting a 6% decline over the past week.
However, SEC Chair Gary Gensler commented on the progress of the spot Ethereum ETF approval process, stating that it is “going smoothly.” He emphasized that the key lies in asset managers providing complete disclosure in their registration statements. But no specific timeline was given–leading analysts suggest, the approval could happen as early as next week.
Senior ETF analyst Eric Balchunas predicts that Ethereum-based funds might be launched by July 2. Meanwhile, a Reuters report indicates that the SEC could approve the spot Ethereum ETFs by July 4. Further, analysts estimate that spot Ether ETPs might need to accumulate $35 billion in assets to achieve parity, a target that could take around 18 months.
Ethereum Could Hit Major Rally
Ethereum’s current market sentiment is uncertain and reflects a broader market trend that affects many cryptocurrencies, including Bitcoin. At the time of writing, Ethereum is trading at $3,367 with a market cap exceeding $404 billion. The daily trading volume has decreased by 6.18% in the last 24 hours, standing at $11.46 billion.
The retreat from May’s peak of nearly $4,000 indicates the difficulty ETH faces in sustaining levels above $4,000. Currently, the major support level is at $3,300, and if ETH is breached, the price could fall to $3,200 and potentially drop further to $3,000. Trading below this threshold could lead to declines towards $2,800 and $2,500.
Further, the relative strength index (RSI) trend suggests continued bearish momentum, signaling that the sell-off might not be over. Adding to this, Ethereum’s price action is currently below the 50-day but above the 200-day simple moving average, indicating a struggle between bearish and bullish forces.
On a positive note, this Ethereum price prediction hints, that the introduction of spot Ethereum ETFs could shift market sentiment positively, encouraging traders to invest in ETH with hopes of a breakout above $4,000. If the ETF inflows increase significantly, a rally might propel Ethereum to the $4,500 range, potentially surpassing the $5,000 milestone.
The Ethereum market remains on edge, with the upcoming Ethereum ETF approvals poised to play a crucial role in shaping future price movements and investor sentiment.
