The approval yesterday in the United States of the Ethereum ETF barely moved the market. This gave rise to new price projections for the asset.
As seen below, ETH rose to $3,900 following the approval. However, it then returned to the lateralization range that it has maintained for four days, mostly between $3,600 and $3,700.
Analyst Michaël van de Poppe explained that this stillness in the ether market shows that “the approval was already discounted due to the strong movement of 20%.” Precisely, the cryptocurrency experienced a rise of such a percentage this week as expectations of an ETF approval grew.
Now there is a waiting period until the ETFs are listed, something that is estimated for mid-June. “Then the influx of capital will determine if there is a strong continuation upwards,” she said.
Beyond the lack of big movement, van de Poppe maintained that this week has been “extremely positive” for the cryptocurrency market with the approval of Ethereum ETFs. He attributes this event as a great step forward for adoption.
In tune, analyst James Van Straten considered that “the week has been wild in terms of regulatory advances for the cryptocurrency industry.” “Most likely, the approval of the ETH ETF marked a local high,” he emphasized.
Therefore, he does not see a continuation to the upside until the launch, when capital flows into the ETFs determine the direction of the market. “Time will tell,” he commented.
Meanwhile, specialists such as the investor known as Jelle project that the market will resume its rise before the launch.
“After ETH ETFs were approved yesterday, the market is now finding out that it will still be a while before they go live,” Jelle said. As such, he foresees choppy price action at least until after the weekend while trying to figure out the next narrative.
In his opinion, a “buy the rumor” scenario will continue until the ETFs are launched that drives the price of ETH higher and a massive sell-off when the event happens. Therefore, under this projection, the market could experience a pullback after the launch, if capital inflows into the new funds do not offset the supply.
There are key prices that ETH should maintain to continue rising
According to the trader known as Crypto Tony, “maintaining USD 3,500 is key now.” This level served as support-resistance for part of 2024, as seen below. Therefore, he believes that a decline to that point would form a solid floor to continue rising. In addition to this, the technical and on-chain analyst Ali Martínez distinguished that various indicators reflect a possible increase in profit taking. He pointed to growing ETH deposits on exchanges in May as examples, as well as the sharp price rise this week that may boost sales.
The analyst clarified that since around 1.66 million ETH were purchased between $3,820 and $3,700, this price zone could be sustained. But if it doesn't hold, the next key support area you see is between $3,580 and $3,462, where over 1.50 million ETH was purchased.
Meanwhile, the most important resistance barrier for Ethereum remains between $3,900 and $4,000, the highest in more than two years that it touched two months ago. “If ETH clears this hurdle and prints a daily candle close above $4,170, the bearish outlook will be invalidated,” he emphasized.
“This could result in a new countdown phase towards $5,000,” the analyst concluded. At the moment, the cryptocurrency's all-time high was almost $4,900 in November 2021 during the previous bull cycle. This is unlike bitcoin (BTC), which set a new record this year, boosting ETH, as it could continue to do in the face of a rally.
