Ethereum bulls are setting their sights on the $4,500 level as the recent approval of an Ethereum Spot ETF brings renewed optimism to the market. This development is likely to spark significant interest among investors and lead to strong upward momentum for ETH/USD price. At the time of writing, Ethereum price is at $3,876, indicating a 1.1% increase in the past 24 hours and 2.2% increase in the past seven days. Meanwhile, Bitcoin price remains sluggish, failing to break through the $70,000 resistance and posing a risk of a re-drop to $65,000.
ETH/BTC Price Analysis: ETH Bulls Preparing for $4,500 as Bitcoin Price Stabilizes
ETH price is trending above the 50-day and 200-day simple moving averages (SMA), strengthening the bullish view on the asset.
Although the price action is nearing the end of the cycle, it is still inside an ascending triangle. A breakout to the upside, which is typical for this chart pattern, could lead to an 11% increase in ETH price in the short term, around $4,500.
In the opposite scenario, ETH price may find strong support near the $3,600 level, a level that has been tested multiple times in the near and distant past and is durable.
Crypto asset analyst Jere shared his views on X, noting that Ethereum price has ended a three-year accumulation phase. He also said that the approval of an Ethereum ETF would be a key catalyst to “propel ETH into the stratosphere.”
Last week, a spot Ethereum ETF was approved, sending ETH soaring and causing a big surge across the cryptocurrency market as a whole, with ERC20 meme coins moving the highest and fastest.
Meanwhile, Bitcoin price has formed a strong support at $68,000, giving market players some assurance of the possibility of an uptrend above $70,000 this week, although it may not be enough to rule out a correction to attract more liquidity at $65,000.
Looking at the ETH/BTC chart, we can see that Ethereum has risen by over 25% against Bitcoin in the month of May alone. If this upward trend continues, the pair could end the month above $0.06. This move would signify a strengthening of Ethereum and signal the arrival of altcoin season.
Ethereum Price Future Outlook
Post-ETF, Ethereum bulls are still trying to stoke enthusiasm to break through certain key resistances for the asset, the first of which is around $3,900, which has been tested twice and has proven to be stubborn.
Above that, ETH bulls may have to contend with the previous all-time high ($4,868) as resistance, after which the price will enter the price discovery zone and could surge.
From its current price to its all-time high, ETH would need to rise by around 25%, no small feat for the altcoin king.
In a recent interview with The Beagle, MicroStrategy CEO Michael Saylor voiced his support for an ETH spot ETF, stating that the ETF would have a positive impact on the cryptocurrency industry, especially Bitcoin.
Conclusion
Ethereum bulls are targeting the $4,500 level as the recent approval of an Ethereum Spot ETF spurs renewed optimism in the market. This approval has sparked significant interest among investors, setting up a strong upward momentum for ETH/USD price. Additionally, the Ethereum network is set to launch the Pectra upgrade in early 2025, following the Dencun upgrade in March. This upgrade will make Ethereum's PoS more secure and functionally efficient.
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