Ethereum price surges to $3,500 again: What to expect next
Recent Price Action – Ethereum (ETH) Price Surge: Ethereum has recently experienced a notable price increase, climbing above the $3,350 resistance area and testing the $3,500 resistance level .
Current Trading Levels: ETH is currently trading above $3,400 and the 100 hourly simple moving average (SMA). There is a bullish trend line forming with support at $3,320 on the hourly chart of ETH/USD1.
Key Resistance and Support Levels - Resistance: An immediate resistance is seen at $3,480 and $3,500. A close above $3,550 could push the price towards the $3,650 and $3,720 resistance zones.
Support: On the downside, an initial support is near $3,400 and the main support is at $3,320. A break below this level could push the price towards $3,270 and $3,2201.
Technical Indicators – MACD: The MACD for ETH/USD is losing momentum in the bullish zone.
RSI: The RSI for ETH/USD is above the 50 area, indicating bullish momentum.
Potential impact of a spot Ethereum ETF:
- Market Depth and Liquidity: Kaiko’s research suggests that the launch of a spot Ethereum ETF in the U.S. could cause Ether to outperform Bitcoin due to increased market depth and institutional demand.
Ethereum-Bitcoin price ratio: This ratio, which shows how many Bitcoins are needed to buy one Ethereum, has risen from 0.045 to 0.05, indicating Ethereum’s relative strength.
Institutional Demand - Ethereum Exchange Reserves: Ethereum exchange reserves are at multi-year lows, indicating that demand and price could surge due to institutional interest in Ethereum ETFs.
Forecast Funding: Analysts predict that an Ethereum ETF could attract $10 billion in funding, or about $1 billion per month2.
A spot Ethereum ETF is close to launch, with the SEC expected to approve it next week and possibly launch on July 23.
Market reaction: Ethereum prices rose more than 7% following the news, reflecting market optimism.
- Political and regulatory influences: Markets are influenced by political developments and regulatory changes in the U.S. Recent positive sentiment is partly attributed to former President Donald Trump dodging an assassination attempt and positive comments on inflation from Federal Reserve Chairman Jerome Powell.
In summary, Ethereum's recent price surge and the expected launch of a spot Ethereum ETF highlight its growing importance in the cryptocurrency market. The potential for institutional investment and regulatory approval may further boost its price and market position. Long-term bullish, pay attention to coins related to the ETH ecosystem, such as popular altcoins with concepts such as L2 and DEFI, which are all good targets. #EthereumEFT
