Ethereum Price Forecast Eyes $3,500 As ETH ETF Preliminary Approvals Signal Parabolic Rally

Ethereum price increased by 4.2% in the last 24 hours to trade at $3,472 at 4:18 am UTC. The increase comes as the SEC gives “preliminary approval” to at least three of eight spot ETH ETF issuers to begin trading next Tuesday.

Ethereum Price Eyes $4,000 As Next Stop Before New Highs

The ETH price reached a low of $2,811 in the recent market-wide downturn, but since Bitcoin began its recovery, Ethereum’s price has been surging. On the 4-hour chart, Ethereum flashed a double bottom, which finished forming when the asset hit $3,484. What remains to be seen is whether the ETH price will break above this temporary resistance or if the bears will prevail and retest $3,300.

The asset’s price action is trending above the 21-day, 50-day, and 200-day simple moving averages (SMA), confirming a bullish uptrend. 

The Chaikin money flow (CMF) is at 0.04 and heading upwards, signaling that buying pressure is increasing on the asset. The relative strength index (RSI) has also crossed above the midpoint and is trending at 59.37 and upwards. This indicates that Ethereum’s bullish momentum is rising, and the asset is in an uptrend. Furthermore, the moving average convergence divergence (MACD) just made a bullish cross, confirming the Ethereum price action reversal from bearish to bullish.

Ethereum price prediction hints at the possibility of further upside movement for the asset to $4,000 and beyond. However, the ETH price may have to conquer potential resistance points around $3,570 and $3,800. On the flip side, Ethereum may find support around $3,350 if the bears prevail, which coincides with the 21-day and 50-day SMAs.

Ethereum ETFs to Begin Trading on July 23

The main spark for the price recovery can be attributed to the preliminary approval of the Spot ETH ETFs from three issuers. According to Eric Balchunas, an ETF expert at Bloomberg, trading is expected to begin on July 23. Market analysts speculate the inflows could be more significant. 

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

Interestingly, the ETH ETF trading will begin right before the Bitcoin 2024 conference in Nashville, slated for July 25-27. Market participants speculate ETH could upstage BTC, forcing the former to be discussed in the latter’s conference. 

According to Coinalyze, ETH aggregated open interest increased by 1.5% across exchanges, with perpetuals taking the largest share of the inflows. 

Bottom Line

Ethereums price surged past $3,450 as preliminary approvals for ETH ETFs sparked optimism in the market. This positive regulatory development is fueling expectations of a potential parabolic rally. The Ethereum price may extend gains to $4,000 and beyond as it eyes new all-time highs.

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