Is Ethereum (ETH) About To Retest $4,000? Analyst Foresees 3x Rally
Amidst the current market slowdown, cryptocurrency analysts are predicting that Ethereum (ETH) may be on the verge of retesting key resistance levels. At the same time, investors are eagerly awaiting the performance of the second-largest cryptocurrency as the final approval of spot ETH ETFs (exchange-traded funds) draws near.
However, there is some debate as to whether the approval of Ethereum ETFs is already priced into the market. Renowned investor Daan Crypto Trades believes that the news of the S-1 form approval will have little impact on Ethereum’s price. He compares it to the previous 19b-4 approval news in May, which sparked a rally but did not have a sustained impact on the token’s price.
According to Daan, the approval by the Securities and Exchange Commission (SEC) is already mostly priced into the market and will not have a significant bullish or bearish effect. The real test, he believes, will be the actual flows once the ETFs are live.
Furthermore, the trader predicts that there will be outflows from the Grayscale Ethereum Trust (ETHE), but not as severe as what was seen with GBTC. He expects the demand for Ethereum ETFs to be around 20% of the inflows seen by spot BTC ETFs.
On the other hand, crypto analyst Jelle is more optimistic about the future of Ethereum. He suggests that ETH is poised to retest key resistance levels, particularly as the ETFs approach. If Ethereum can successfully hold the 200-day EMA (Exponential Moving Average), Jelle believes it could reach the $4,000 mark. He also predicts that Ethereum will outperform Bitcoin in the coming weeks, while Bitcoin experiences a period of sideways movement.
Jelle emphasizes that investors should not underestimate the potential of Ethereum, despite the skepticism it often faces. He points out that in every cycle, people doubt ETH, calling it “dead tech,” only to be proven wrong again.
Currently, ETH is trading at $3,121, with a 5.4% increase in the last week. Although it has experienced a 13% decrease in the past month, some market watchers see its current price as a good opportunity for investment, with the potential for a 3x return in the next 12 months.
In conclusion, there are mixed opinions about the impact of Ethereum ETFs’ approval on ETH’s price. However, analysts foresee the possibility of retesting resistance levels and anticipate a potential rally for Ethereum in the coming months.