Ethereum could break through numerous resistance levels and even enter the path toward an ATH after numerous ETFs might potentially get approved next week. However, staying cautious is still extremely important.
The market has been buzzing since 10 Ethereum ETFs, including VanEck Fidelity and Grayscale, have announced their upcoming launches next week. These ETFs may result in large capital inflows into Ethereum, similar to the substantial capital inflows that Bitcoin saw following its approval of ETFs.
ETH/USD Chart by TradingView
The approval of Bitcoin ETFs has historically raised investor interest and resulted in significant inflows, which has raised prices. Ethereum's price may see a large increase if Ethereum ETFs exhibit a similar pattern.
Just below the 50-day Exponential Moving Average (EMA) major resistance level, Ethereum is currently trading at $3,440. In the event that this level is broken, $3,800 could be the next major barrier. If the ETF approvals proceed, the flood of institutional capital could propel Ethereum past this point, perhaps aiming for the psychological $4,000 threshold. But we must approach this optimism cautiously.
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Though the market can be unpredictable, there is a good chance of significant inflows. It is possible that some of the expectation of ETF approvals has already been factored in. Further more, there may be a retreat if the approvals are delayed or denied.
The potential approval of 10 Ethereum ETFs next week could significantly impact Ethereum's price, possibly driving it toward $4,000. If we derive parallels from Bitcoin's ETF-driven inflows, Ethereum might see substantial institutional investments. However, the general sentiment on the market has much more impact on Ethereum or even Bitcoin right now than the potential approval of the ETF.
