Ethereum Price Analysis: ETH To $4,000 While Ethereum ETF Approval Beckons?

A brief rally last week increased the hope of a market-wide rally buoyed by an improving macro environment. Bitcoin and Ethereum prices increased modestly, topping $67,000 and $3,100. Based on the Ethereum price analysis, a major breakout is beckoning towards the coveted $4,000 level.

Will The SEC Approve Ethereum Spot ETF This Week

The US Securities and Exchange Commission (SEC) is expected to decide whether to approve or reject spot Ethereum ETFs.

Several high-profile fund managers are keenly watching for this critical decision, starting with VanEck, whose application’s deadline falls on May 23.

Subsequently, two applications by Cathie Wood’s ARK Invest and 21Shares have deadlines on May 24. Other major players like BlackRock, Galaxy Digital, Franklin Templeton, Fidelity, Bitwise, and Hashdex are also in line to operate spot Ethereum ETFs.

However, the general outlook in the industry is that the agency will reject the applications. ETF applicants say that they have not seen as much engagement with the SEC compared to weeks before Bitcoin ETFs were approved on January 10.

Some of the factors that could drive the decision to reject the ETF include the lack of sufficient data, according to Matt Hougan, an executive from Bitwise. Moreover, the SEC is yet to clear Ethereum’s status, with some like Scott Johnson, a legal expert saying the regulator could label Ether an unregistered security.

Labelling Ethereum as an unregistered security could have far-reaching implications for the token and the crypto industry at large. For instance, the hope for a spot Ethereum ETF may go up in flames, at the same time, changing how Ether is traded in jurisdictions like the the US.

On the other hand, an approval could immediately change the asset’s outlook for new record highs. The approval would ignite a broader market trend and set a precedent for more digital assets ETFs.

Ethereum Price Analysis: Poised For Wedge Pattern Breakout?

Ethereum price sits above $3,100 and changes at $3,110 during US business hours on Monday. There are signs of a bullish momentum making a comeback in the new week, thanks to optimism for the approval of spot ETFs.

The formation of a falling wedge pattern on the daily chart reinforces the bullish grip on ETH. A breakout above the 50-day Exponential Moving Average (EMA) could drive the price higher toward $4,000.

Backing the uptrend is a buy signal from the Moving Average Convergence Divergence (MACD). Traders will consider placing buy orders slightly above the upper falling trendline, aiming for a sharp move to $3,400 and $3,800 this week.

Ethereum price analysis chart | Tradingview

Ethereum price should hold above the 20-day EMA (in blue) to affirm the bullish grip. Otherwise, it might be too early to assume a bullish outcome to $4,000.

Losing this level of support would put Ethereum price at risk of falling below $3,000 again. In such an occurrence, traders may focus on $2,800 and $2,600 as areas to apply new buy entries.

The post Ethereum Price Analysis: ETH To $4,000 While Ethereum ETF Approval Beckons? appeared first on CoinGape.