Ethereum ETH Price Set For 20% Price Increase? Techniques say yes

Ethereum, the second largest by market capitalization, is showing signs of a potential rally in the medium term. The latest data and key indicators from the futures market show that bullishness around ETH is increasing.

TLDR

Ethereum futures open interest and positive support suggest that it may remain above $4,000 in the medium term. Key indicators such as MACD and DMI confirm bullishness in the ETH spot market. Ethereum holds gains above $3,400 and could reach $4,500 or $5,000 in the coming weeks if bulls remain active. VanEck and CoinShares CEOs Express Doubt About SEC Approving One Place Ethereum ETF in 2024 JPMorgan strategists believe the SEC will eventually approve Ethereum ETFs, possibly after a potential rejection in May.

According to a report by Fake CryptoQuant analyst ShayanBTC, Ethereum futures open interest is on the rise and funding volume has remained positive despite the overall market consolidation in March. A positive cash flow indicates that many traders hold long positions and expect the asset's price to increase in the short to medium term.

The report also highlights a “proportionate increase in the currency rate” as ETH attempts to regain its $4,000 price mark, suggesting that long positions have been aggressively executed by market participants.

According to Coinglass data, Ethereum futures open interest has reached $15 billion, a 7% increase over the past seven days.

In addition to the futures market, key indicators on the Ethereum spot market confirm an increase in bullishness. The MACD (Moving Average Convergence Divergence) line has crossed above the signal line for the first time since March 15, indicating an increase in bullish momentum. Moreover, the ETH Directional Movement Index (DMI) shows that the positive direction indicator has crossed over the negative index, which confirms the change of sentiment from bearish to bullish.

Ethereum's price action suggests a possible rally, holding the cryptocurrency above the $3,400 level. If bulls remain active, ETH could reach $4,500 or $5,000 in the coming weeks. However, immediate resistance is at the $3,800 level, and a clear break above $4,080 could open the door for further upside.

While the technicals paint a bullish picture, there is still uncertainty regarding the approval of the spot Ethereum ETF by the US Securities and Exchange Commission (SEC).

VanEck CEO Jan Van Eck and CoinShares CEO Jean-Marie Magnetti have both expressed doubt that the SEC will approve an Ethereum ETF by the end of 2024.

VanEyck, who filed for the spot ethereum ETF, believes there is a possibility of a rejection when the SEC completes its review on May 23. Magnetti, on the other hand, does not see anything approved this year, citing doubts about the SEC's authorization for the certification of stock protocols.

However, JPMorgan strategists led by Nikolaos Panigirtzoglou believe the SEC will eventually approve Spot Ethereum ETAs, even if not in May. If there is no confirmation in May, a litigation process similar to the legal battles of Grayscale and Ripple may follow, eventually indicating that the SEC has approved the spot Ethereum Ethereum.

Despite regulatory skepticism, Ethereum's on-chain metrics provide further evidence that a rally is possible. About $1.2 billion of liquidity was withdrawn from the spot market last month, hinting at a bearish signal. If this supply shock continues, it could support a further rally in ETH price.

While spot Ethereum ETF approval is uncertain, technicals and on-chain metrics suggest that ETH may be poised for a significant rally in the medium term.