ETH Price Rally Persists Hours to Major ETF Decision Announcement

Summary:
• ETH Price has stayed up as buyers stay optimistic that the SEC will approve multiple applications for Ethereum Exchange Traded Fund.

Ethereum price has stayed on the climbing lane on Thursday, as investors wait for a decision by the Securities Exchanges Commission regarding ETH spot ETF applications. ETHUSD traded at $3,872, and up by 3.62 percent in the intraday trading session, hours to the big announcement. That effectively reversed Wednesday’s decline of 1.38 percent, cementing hope that a bullish momentum could dominate most of the day.

BlackRock, Bitwise, Grayscale, Van Eck, Ark 21Shares, Fidelity, Franklin and Invesco submitted their amended 19b-4s filings to the Securities & Exchange Commission (SEC) and the decision on those applications is expected to impact the market significantly. An ETF approval for Ethereum will make it a mainstream financial asset in a regulated environment- a factor that is expected to drive up demand for ETH significantly. It is worth remembering that a similar approval of 11 Bitcoin ETF applications in January triggered a market rally that drove BTC price upwards of 70 percent. With Ethereum joining Bitcoin, investors will have an alternative regulated crypto product with which they can diversify their portfolio.

Despite the upbeat sentiment, however, analysts are warning that investors should be cautiously optimistic, as there’s a chance that the ETF applications could be denied. Furthermore, there’s the risk of profit taking after a long period in which many have been “buying” the ETF news. Some skeptics opine that Ether price climbed too fast too soon, and that may limit the headroom after the announcement. Also, there has been a notable spike in ETH inflows into exchanges, with the figure topping 107,000 as of this writing. This could potentially lead to a steep decline if the ETF approval process gets delayed.

Technical analysis

ETH/USD price is currently on an upward momentum, and the buyers will be in control if they keep the price above 3839.60. That could see them break the resistance at 3930.91 in extension, and potentially test 4,000. On the other hand, a move below the 3839.60 pivot mark will favour the sellers to take control. In that case, the first support will likely be at 3775.73. However, if the sellers maintain that control, they could break the support and invalidate the upside narrative. Furthermore, the resulting momentum could send the price lower to test 3712.88.