As the broader crypto market is making waves today, the price of Ethereum is also winning on the charts. It has gone ballistic, soaring 4% to trade at $3,402 during the European trading session. Its 24-hour trading volume has notably jumped 48% to $18 billion, suggesting intense activity among traders and investors.
Ethereum’s price surge can be attributed to various factors in the crypto sector. First, the recent surge of the leading cryptocurrency, Bitcoin, has a ripple effect across the cryptocurrency market. Bitcoin broke above the $63,000 mark on July 15, leading to a surge in the crypto market, including Ethereum.
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Secondly, Ethereum’s price recovery can be attributed to the preliminary approval of Ethereum ETF. Eric Balchunas, a senior analyst at Bloomberg, has taken to the X platform, hinting that the ETH ETF trading will commence on July 23.
Update: Nate's instincts were right, hearing SEC finally gotten back to issuers today, asking them to return FINAL S-1s on Wed (incl fees) and then request effectiveness on Monday after close for a TUESDAY 7/23 LAUNCH. This is provided no unforeseeable last min issues of course! https://t.co/D21FD9Qf94
— Eric Balchunas (@EricBalchunas) July 15, 2024
Moreover, the ETH ETF trading will commence right before the Bitcoin 2024 conference in Nashville on June 25-27, where Donald Trump is set to give his remarks on Bitcoin. Market analysts and participants speculate that Ethereum’s price could potentially transcend Bitcoin.
The $BTC dominance has likely peaked. Ethereum has been outperforming Bitcoin for two months straight.
The upcoming Ethereum ETF will likely push it even further, through which the potential bearish divergence on the weekly timeframe seems inevitable to be valid. pic.twitter.com/gauZeQKYNf
— Michaël van de Poppe (@CryptoMichNL) July 13, 2024
Ethereum Statistical Data
Based on Coinmarketcap data:
- ETH price now – $3,402
- ETH market cap – $407.9 billion
- ETH total supply – 120.22 million
- ETH circulating supply – 120.22 million
- ETH ranking – #2
In the recent crypto bloodbath, Ethereum’s price touched a low of $2,813. However, it shows signs of recovery as the leading cryptocurrency, Bitcoin, also surged. The Ethereum price flashed a double bottom pattern but finished forming as the price hit $2,813. The ETH bulls have established strong support at around $2,849 as the ETH price has kickstarted a V-shaped recovery.
Technical Indicators Suggest Increased Buying Momentum
Diving into the technical outlook, let us speculate whether the ETH bulls will break above the $4,000 resistance or the bears will step in. The ETH price trades well above the 200-day Simple Moving Average (SMA)(blue), as the $3,142 mark is its immediate support. However, the $3,456, which coincides with the 50-day SMA (green), is suppressing the bulls from breaking off to their higher limits.
On the other hand, the Relative Strength Index(RSI) has its strength at 55, above the 50-mean level. This suggests intense buying pressure in the market. However, it is worth noting that if the bulls lose momentum, the bears might step in as the momentum indicator points south. Increased buying pressure might see the RSI jump to the 70-overbought zone.
In the same way, the Moving Average Convergence Divergence (MACD)in blue has made a golden cross above the signal line (orange). This shifts the market momentum from bearish to bullish, tilting the odds towards the buyers. Notably, traders are inclined to continue buying Ethereum unless the trend in the MACD changes.
Ethereum Price Prediction
The odds favour the upside in the daily chart timeframe as the bulls dominate the market. Increased buying pressure will lead to the bulls flipping the 50-day SMA into support at around $3,464. In such a scenario, the bulls could propel the price, surpassing the $4,000 technical barrier.
Conversely, if the bears step in and the crypto market turns negative, they might breach the $3,142 mark, invalidating the bullish thesis.
Bottom Line
Recently, the ETH ETF obtained approval, causing the Ethereum price to surge above the $3,400 mark. The prospect of Ethereum ETF trading thrills traders, as it could bring substantial institutional money into Ethereum. This could increase demand, leading to Ethereum’s price extending its gains to above $4,000 as it eyes new ATHs.
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