Crypto markets retreated from weekly peaks due to unexpected spot approval. Ethereum ETFFollowing Monday's rally, prices fell across the board on D-Day. At the time of writing, Bitcoin price projections have remained unchanged over the past 24 hours, hovering at $68,050. Ethereum is in the red, sending mixed signals ahead of the weekend.
Why the Ethereum ETF Failed to Move the Market
Securities and Exchange Commission (SEC) abruptly pivoted to a spot Ethereum ETF on Monday, following what industry experts described as a politically motivated move.
ETF operators were urged to quickly update their proposals ahead of Thursday's approval. Three exchanges — Nasdaq, the New York Stock Exchange and CBOE — have been allowed to list Ethereum exchange-traded products (ETPs), but trading cannot begin until the SEC approves the individual ETP operators.
Experts are concerned that the SEC may slow down the approval process, which could further delay actual trading of Ethereum ETFs and ETPs, which is likely one of the reasons for the suppressed prices following the news.
The SEC remains concerned about fraud and market manipulation and has called for the two factors to be addressed through extensive oversight and sharing agreements. The SEC has directed the operator to work closely with the Chicago Mercantile Exchange (CME) to detect and prevent fraud and market manipulation.
Ethereum futures prices traded on CME should correlate with spot Ethereum ETFs, and the three exchanges have submitted analysis to determine this correlation.
Bitcoin price prediction after Ethereum ETF approval
On the 4-hour chart, an ascending channel continues to guide Bitcoin's recovery. Despite volatility, important support and resistance levels have been established in recent weeks since Bitcoin recovered from $56,500.
Widespread uncertainty could have triggered a correction from $72,000. Not all traders believe so. Bitcoin Price Rather than closing the gap with the projected $100,000 target for 2024, it looks set to maintain an upward trend above $70,000.
Based on the Moving Average Convergence Divergence (MACD) indicator, the path of least resistance is downwards, with the MACD line sitting below the signal line and the red histogram reinforcing the sell signal, suggesting further losses may be on the way.
To counter this pessimistic outlook, Bitcoin The 20-day exponential moving average (EMA) at $68,471 needs to turn into support and then a breakout above the channel's middle boundary or the hurdle of $70,000 is required to confirm the uptrend.
Conversely, traders cannot ignore the possibility that selling pressure could overwhelm the bulls, especially if the immediate support at $67,671, the 50-day EMA, breaks down.
Losing support at the lower end of the channel or at the $66,000 level could be detrimental to Bitcoin’s future. Such a move could bring the 200-day EMA at $65,234 into view, with the risk of a prolonged drop to $64,000 or $62,000.
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