While Ethereum has achieved a significant increase in value, reaching 25% since the beginning of the week, it has significantly compensated for its ongoing losses since March. The rapid increase in demand for Ethereum has also catalyzed the altcoin market. This rapid increase in demand for Ethereum, which has gained nearly 20% in value against Bitcoin, was triggered by increasing rumors in the market that spot ETF approval may come. In recent months, Ethereum has entered a downward trend with rumors that the SEC may postpone spot ETFs.
In our last analysis of Ethereum, we emphasized that this downward trend formed a falling triangle formation. According to this formation, the support line between 2,800 - 2,900 dollars, which has been maintained since April, formed the base of the triangle, while the continuation of the downward trend until the first half of this month also led to a squeeze in the ETH price. Last week, after Ethereum buyers maintained the support level once again, with additional purchases, Ethereum returned to the $ 3,000 band and gave signals that it had broken the falling triangle formation upwards.
Ethereum made an upward jump this week as a result of the price squeeze seen the previous week. At this point, the cryptocurrency appears to have completed its upward setup by rising to the $3,800 region, according to the recent downward trend and the measurement of the falling triangle formation.
Measured against the downtrend, we see that ETH price is facing significant resistance at Fib 0.786, which is equivalent to $3,830. In the lower region, $ 3,630 can be followed as the closest support with Fib 0.618.
The majority view in the market remains that the SEC may green light spot Ethereum ETFs. Recent purchases support SEC's ETF approval. However, the wind in crypto markets can change direction quickly.
