Ethereum’s Price Expected to Reach a Certain Level Prior to the Launch of ETH ETF Trading

ETH ETFs are expected to begin trading in July or August, and the market is already predicting a bullish trend. Arthur Cheong, CEO of DeFiance Capital, believes that Ethereum will reach $4,500 before spot ETF trading starts. He expects that the approval of spot Ethereum ETFs in the U.S. will attract retail investors, similar to the crypto boom in 2017. Currently, retail investors hold over 70% of spot Bitcoin ETF positions, and Cheong anticipates a similar trend for Ethereum.

Cheong’s prediction has sparked discussions among cryptocurrency enthusiasts and investors, as the potential increase in Ethereum’s value is seen as a significant development in the cryptocurrency market. However, it is important to note that these predictions are speculative, and actual market performance may vary.

Despite the anticipation, Ethereum’s price has struggled to maintain momentum. The U.S. SEC has approved only the 19b-4 requests for Ether ETFs’ launch, with the crucial S-1 forms still awaiting authorization.

Eric Balchunas has highlighted some inherent limitations of Ethereum ETFs, such as the inability to stake tokens and the lack of on-chain utility through such financial products. According to him, these factors have contributed to the high volatility of Ethereum’s price, which has been fluctuating above the $3,600 level. If the support holds, buyers are likely to challenge the $4,090 resistance in the coming weeks.

Bullish predictions suggest that a potential breakout could accelerate Ethereum’s bullish momentum, targeting $4,500 and potentially reaching $4,900. However, the market was unimpressed by this interim milestone, as Ether’s price dropped from $3,830 to $3,670 immediately after the approval. Currently, Ether is trading at $3,743 on major spot exchanges, showing a modest 0.89% increase in the last 24 hours, underperforming the market’s benchmark of 1.9%.

Technically, the Exponential Moving Average (EMA) indicates that the ETH price being above the 20, 50, 100, and 200-day EMAs is a sign of a strong bullish trend. However, the Average Directional Index (ADX) at 33% suggests that the trend might need a pullback to regain strength.

The approval of Ethereum ETFs has undoubtedly brought attention to the altcoin, but questions remain about the sustainability of the current momentum. Whether it will continue to rise or decline, we welcome your views.