Ethereum’s price remains strong above $3,100 as the market eagerly awaits the decision on spot Ethereum ETFs by the SEC. This decision could have a significant impact on the overall market outlook. If the ETFs are approved, it could potentially drive Ethereum to new all-time highs. However, if the applications are rejected, it may lead to a drop in price below $3,000.
Despite the anticipation surrounding the decision, there is a prevailing sentiment that the SEC might reject these applications. Some applicants have noticed less engagement from the SEC compared to the period before Bitcoin ETFs were approved earlier this year.
On the flip side, if the ETFs are approved, it could have a positive effect on Ethereum’s market outlook. Analysts are closely watching the potential breakout towards $4,000. Recent price analysis suggests bullish momentum, with a falling wedge pattern on the daily chart. If Ethereum breaks above the 50-day EMA, it could potentially push prices towards the $4,000 level.
The MACD indicator has generated a buy signal, encouraging traders to place buy orders above the upper trendline, with targets set at $3,400 and $3,800 for the week. However, for this bullish trend to continue, Ethereum needs to maintain support above the 20-day EMA. Failure to maintain this support could result in prices dropping below $3,000, and traders may consider $2,800 and $2,600 as potential buy entry points.
Therefore, the upcoming decision on spot Ethereum ETFs by the SEC is highly anticipated and could significantly impact Ethereum’s price and market sentiment.