- Ethereum (ETH) has been struggling to recapture the highs seen in the last market cycle, leading to a bearish outlook among some crypto enthusiasts.
- There are increasing rumors that an Ethereum ETF (Exchange-Traded Fund) could soon be approved, which may significantly alter the market sentiment.
- REUTERS reported insights from investment firms and industry experts who anticipate an imminent ETF approval, fueling optimism for an “ETH season.”
Ethereum’s upcoming ETF approval could be a game-changer, potentially signaling the start of a bullish phase for the cryptocurrency.
Anticipated Ethereum ETF Approval
According to sources reported by REUTERS, Ethereum ETFs are expected to receive approval next week. This follows recent comments from SEC Chair Gary Gensler, who spoke about the steadily progressing approval process at the Bloomberg Invest Summit, suggesting a launch could occur as early as this summer, possibly even in July.
Industry insiders, including legal experts involved with the ETF applications, are optimistic, predicting approval could happen by July 4. This expectation has had a noticeable effect on ETH’s market performance, with the cryptocurrency experiencing a 2.5% price uptick, bouncing back to the $3,400 support level.
Market Reaction to ETF Rumors
The rumors of an upcoming ETF approval have already influenced Ethereum’s market position. A month ago, anticipation of an SEC decision pushed ETH’s price from $3,000 to $3,900, although it has since retraced to a $3,200 support zone. Nevertheless, the recent rumors have infused the market with renewed optimism, helping ETH recover to $3,400.
Is an ‘ETH Season’ Imminent?
Crypto analyst Jelle suggests that Ethereum may be poised for substantial gains, even if the ETF launch turns out to be less dramatic than expected. Jelle’s technical analysis indicates that ETH is testing key levels and could soar if it breaks the $4,000 barrier. This would mark a breakout from a long-term downtrend and potentially initiate a bullish phase dubbed “ETH season.”
Technical Analysis and Predictions
Analysts like Daan Crypto Trades emphasize Ethereum’s consolidation along a significant two-year downtrend line. Breaking above the May highs at 0.0575 could flip the market structure to a bullish stance. Additionally, Crypto Yoddha and trader Miky Bull highlight Ethereum’s promising technical indicators, including a falling wedge pattern and retracement to the fibonacci .618 level, respectively, suggesting that a strong rally could be imminent.
Despite ETH being down over 10% from its May peak, it has seen a 3.6% rise in the last 24 hours, currently trading at around $3,450.
Conclusion
In summary, the potential approval of an Ethereum ETF could be a pivotal moment for the cryptocurrency, possibly igniting a new bullish phase. Investors and traders are closely watching the developments, with many analysts providing optimistic forecasts. Whether or not “ETH season” is truly on the horizon, the next few weeks will be crucial in determining Ethereum’s market trajectory.
