Ethereum ETH Price Poised for Rally Ahead of Potential Spot ETF Launch
Ethereum (ETH), the second-largest cryptocurrency by market cap, is gearing up for a potential rally as the crypto community eagerly awaits the launch of spot ETH exchange-traded funds (ETFs). Currently trading at $3,182.81, ETH has experienced a slight dip in the last 24 hours but has recorded a promising 4.53% gain over the past week.
TLDR
Ethereum (ETH) is currently trading at $3,182.81, with a slight dip in the last 24 hours but a 4.53% gain over the past week.
The anticipation of a potential ETH rally is fueled by the recent approval of spot Bitcoin and Ethereum ETF applications in Hong Kong.
On the weekly chart, ETH has been in a descending ranging channel, but the current weekly candlestick is bullish, suggesting potential for upside movements.
ETH is currently testing the broken-down support at the $3,190 zone on the daily chart, and a break above this resistance could lead to a rally.
The drop in Open Interest combined with the price trajectory of the past weeks suggests a possible downtrend for ETH, but on-chain metrics show some positive signs for bulls.
The anticipation surrounding Ethereum’s potential rally is largely fueled by the recent approval of spot Bitcoin and Ethereum ETF applications in Hong Kong on April 15th, 2024. With the deadline for one of the spot ETH ETF applications set for May 23, investors are optimistic about a significant catalyst that could propel ETH’s comeback.
From a technical perspective, Ethereum has been trapped in a descending ranging channel on the weekly chart. However, the current weekly candlestick is bullish, with buyers entering the market and pushing prices above the previous week’s close.
The Relative Strength Index (RSI) at 59 indicates a recent buying spree, suggesting potential for upside movements before reaching the overbought region.
On the daily chart, Ethereum is currently within a parallel descending channel and is testing the broken-down support at the $3,190 zone. If ETH manages to break this resistance, it could rally to fill a fair value gap left during its recent bear run on April 12th and potentially test the descending trendline. The daily RSI of 46 shows ample room for a buying spree before reaching the overbought region.
However, the drop in Open Interest combined with the price trajectory of the past couple of weeks suggests that a downtrend is also possible for ETH. This drop in Open Interest from $10 billion to $7.17 billion in April is likely a reset similar to the one seen in mid-February 2021 during the previous bull run.
Despite this uncertainty, on-chain metrics show some positive signs for bulls. The 90-day mean coin age has been steadily increasing since March 27th, indicating a network-wide accumulation of ETH.
Additionally, the 30-day MVRV (Market Value to Realized Value) ratio has been negative for nearly a month, suggesting that holders are currently at a loss and presenting a good buying opportunity.
User adoption and sentiment have fallen alongside prices, with the weighted social sentiment being negative for the most part since mid-March. However, an uptick in the network growth metric would be a sign of growing demand and could follow an uptrend in price.
If ETH can climb back above the $3,300 resistance level, swing traders and investors will be more confident of continued gains.
The potential for a significant rally in Ethereum’s price is undeniable, given the potential for a spot ETF launch and the positive signs from on-chain metrics.
The post Ethereum ETH Price Poised for Rally Ahead of Potential Spot ETF Launch appeared first on Blockonomi.
