Highlights:
- Ethereum is currently trending toward $3630 resistance
- Breach of this resistance could trigger a rally to $5k
- ETF approval and end of SEC investigation against Ethereum likely bull triggers
Ethereum is making headlines as one of the top trending cryptocurrencies today. The excitement surrounding Ethereum stems from significant recent developments, including the SEC halting all investigations into whether Ethereum is a security.
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JUST IN: The SEC suspends investigation into Ethereum 2.0. $ETH is a commodity.
We won. 🥛 pic.twitter.com/NLy2vLzr1H
— Milk Road (@MilkRoadDaily) June 19, 2024
Additionally, the approval of Ethereum ETFs, which are expected to start trading in the next three weeks, has further fueled the positive sentiment. At the time of going to press, Ethereum was trading at $3577 as of 10:05 UTC, marking a 1.14% increase in the last 24 hours.
Don’t Miss: Ethereum Whales Active After SEC’s Favorable Decision
Positive Developments Spark Optimism
The cessation of the SEC’s investigation has removed a significant cloud of uncertainty hanging over Ethereum. This regulatory clarity, combined with the impending launch of Ethereum ETFs, has created a bullish outlook for Ethereum.
Crypto Nova, a renowned crypto analyst, noted that since 2021, Ethereum has underperformed against Bitcoin. This trend has mirrored the broader altcoin market, which has also lagged behind Bitcoin since the last bull market. However, the current developments suggest a potential shift, with Ethereum showing solid signs of an impending explosive move to the upside.
Ethereum about to show everyone why it’s called the king of alts.
And this could have HUGE implications for an upcoming ALTSEASON.
Since 2021… pic.twitter.com/gE6wGInvWH
— Crypto Nova (@CryptoGirlNova) June 20, 2024
Ethereum’s Role in the Altcoin Market
Ethereum’s importance extends beyond its performance; it is the backbone of the entire altcoin market. Approximately 90% of all DeFi projects are built on Ethereum, highlighting its crucial role in the crypto ecosystem. When Ethereum rallies, it often leads to a broader altcoin market surge. This interconnectedness means that a bullish Ethereum could spark a broader market rally, benefiting numerous other cryptocurrencies.
Ethereum will show a lot of strength once the ETH ETFs start trading.
Bitcoin went from $42k to $72k.
Imagine what ETH will do 👀
— Patric H. | CryptelligenceX (@CryptelligenceX) June 20, 2024
On-Chain Activity and Market Momentum
The growing on-chain volume indicates a resurgence in market activity, suggesting that Ethereum’s bullish momentum is gaining traction. Analysts predict an imminent Ethereum season, which could lead to a broader all-season and booming utility for DeFi projects. The recent price action supports this outlook, with Ethereum making a solid rebound following the SEC news. In the last 24 hours, Ethereum bulls have regained control after the price hit a low of $3372, pushing Ethereum to its current level of $3579.
Ethereum Technical Analysis and Price Projections
Looking at the charts, Ethereum is trending towards an intra-day resistance at $3630. If bulls can push through this resistance, Ethereum could reach highs of $3800 to $4000 within the day. However, if bulls fail to overcome the $3630 resistance, Ethereum might enter a consolidation phase between this resistance level and the $3518.6 intra-day support.
Source: TradingView
If bears take control and break through the $3518.6 support, Ethereum could drop to around $3372. Despite these potential scenarios, the odds favor a move higher or a short-term consolidation. The positive news regarding the SEC investigation and the anticipation of Ethereum ETFs are likely to build investor confidence and drive a rally past the $3630 resistance.
Broader Market Support and Bitcoin’s Role
Bitcoin’s current stability above the $65,000 mark supports Ethereum’s potential rally. Bitcoin’s strong performance indicates a return of broader market confidence, which benefits Ethereum. As the leading cryptocurrency holds its ground, it sets a positive tone for the entire crypto market, including Ethereum.
A Bullish Outlook for Ethereum
Ethereum is showing solid signs of a rebound, driven by positive factors. The SEC halting its investigation and the approval of Ethereum ETFs have significantly boosted market sentiment. As Ethereum trends towards critical resistance levels, the likelihood of a breakout to higher prices is increasing. The broader market’s stability, particularly Bitcoin’s performance, further supports this optimistic outlook.
Investors should closely monitor Ethereum’s price movements, especially at the $3630 resistance. Breaking this could open the way for an Ethereum rally to $10k or higher in the short term. Ethereum’s scarcity in the face of institutional demand makes such a scenario possible in the short term.
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Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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