Ethereum, renowned as the second most valuable cryptocurrency based upon market capitalization, currently sits on the edge of a dramatic shift. Exuding potential for an imminent breakout, expert analysts in the cryptocurrency field have begun to sit up and take notice.
A respected figure within the crypto community, Jelle, has spotted signs that Ethereum is approaching the conclusion of a falling wedge pattern. This particular formation in the cryptocurrency trading world is often seen as a positive portent of a bullish turn.
A closer look into the technical charts reveals a rather noteworthy occurrence; Ethereum’s chart, according to Jelle’s analysis, reveals a distinct falling wedge pattern. The timing of this is of no less significance as Ethereum succeeded in recovering its 100-day Exponential Moving Average (EMA) right as it’s near the end of the pattern. This fascinating crossover only strengthens the case for a bullish outlook.
Jelle maintains that if Ethereum rides this momentum wave and charges past the falling wedge’s upper envelope, it might see itself setting its crosshairs at the landmark figure of $4,000. The analyst views this figure as not just a ‘psychological’ milestone, but highly critical from a technical perspective as well.
As it stands, Ethereum is hesitating indecisively just over the $3,000 mark. To be precise, the cryptocurrency was last seen lounging at the price of $3,088. Ethereum’s modest but steady upward gains over the past week have made even the skeptics take pause. The upward tick of 4.1% is a promising sign.
However, a closer inspection of the price evolution shows that Ethereum seems to be comfortably settling just above the $3,000 limit. Signs of such consolidation often suggest future movement of significance, hinting at a potential jump.
Much of this non-committal demeanor can be attributed to the current state of anticipation in the markets, with speculations rife about the US Securities and Exchange Commission’s (SEC) looming decision about the approval of the much-discussed spot Ethereum ETF.
Both buyers and sellers appear to have hunkered down. Market participants seem to be on standby, collectively holding their breaths as they wait for the consequential decision, likely to shape their impending strategic actions.
Regarding the spot Ethereum ETF, Bloomberg’s Senior ETF Analyst, Eric Balchunas, has been notably cautionary, giving the proposition of approval a meager 25% chance.
In sharp contrast, Nate Geraci, the head honcho at the ETF store, explains the approval process requires several key stages, wrapping up both the acceptance of the 19b-4 filings (Exchange Rule Changes) and S-1 registration statements (for new securities).
Geraci admits a level of optimism regarding the approval of the 19b-4 filings. However, the uncertainty shrouding the S-1s continues to cast long shadows. The SEC’s slow-paced response to these filings suggests a potentially drawn-out review period, potentially pushing back the launch of Ethereum spot ETFs.
