Ethereum ETH Price Set For Rally Potential Spot ETF Launch
Ethereum (ETH), the second largest by market cap, is gearing up for a rally as the crypto community eagerly awaits the launch of spot ETH exchange-traded funds (ETFs). Currently trading at $3,182.81, ETH has experienced a slight decline over the past 24 hours but has recorded a promising 4.53% gain over the past week.
TLDR
Ethereum (ETH) is currently trading at $3,182.81, having moved slightly over the past 24 hours but gained 4.53% over the past week. Anticipation of a possible ETH rally was fueled by the recent approval of spot Bitcoin and Ethereum ETF applications in Hong Kong. On the weekly chart, ETH has remained in a descending channel, but the current weekly candlestick is very bullish, suggesting the possibility of an upward move. ETH is currently testing the split support at the $3,190 zone on the daily chart, and a break above this resistance could lead to a rally. The decline in open interest combined with the price advance of the past few weeks suggests a possible downside for ETH, but on-chain gauges are showing some positive signs for the bulls.
On April 15, 2024, the excitement surrounding Ethereum's potential rally is due to the recent approval of spot Bitcoin and Ethereum ETF applications in Hong Kong. With the deadline for one of the spot ETH ETF applications set for May 23, investors may be concerned about the return of ETH.
From a technical point of view, Ethereum is caught in a descending channel on the weekly chart. But the current weekly candlestick is strong, with buyers entering the market and pushing prices above the previous week's close.
The Relative Strength Index (RSI) shows recent overbought momentum at 59, suggesting the possibility of an upward move before the overbought region is reached.
On the daily chart, Ethereum is currently in a parallel descending channel and is testing the broken support at the $3,190 zone. If ETH is able to break this resistance, it could attempt to fill the fair value gap left during the recent bear run on April 12 and test the descending trend line. The 46 daily RSI shows ample room for buying expansion before reaching the overbought region.
However, the decline in open interest combined with the price trend of the past two weeks suggests a possible bearish trend for ETH. This could be a similar reset to the fall in open interest from $10 billion in April to $7.17 billion in February 2021 during the previous bull run.
Despite this uncertainty, gauges across the chain are showing some positive signs for bulls. The 90-day average coin age has been steadily increasing since March 27th, indicating network-wide ETH reserves.
Additionally, the 30-day MVRV (Market Value to Real Value) ratio has been negative for almost a month, indicating that holders are currently in losses and a good buying opportunity.
User adoption and sentiment have fallen along with price, with weighted social sentiment largely negative since mid-March. However, an increase in the growth rate of the network indicates an increase in demand and may lead to an increase in prices.
If ETH can break back from the $3,300 resistance level, volatility traders and investors will be more confident of continued gains.
Given the potential of the spot ETF launch and the positive signals on the chain metrics, the possibility of a significant rally in the price of Ethereum is undeniable.
