Amid growing speculation that an Ethereum ETF will be approved by the Securities and Exchange Commission (SEC), ETH price has recorded a significant increase of 19.26% in the past day, with trading volume registering a surge of 243.69%.
Furthermore, the market leader BTC price managed to regain the $72,000 mark, rising by 7.12% with a 130% increase in trading volume during the first half of today's trading session.
Will ETH price hit a new all-time high (ATH) in May this year? What are the chances of Spot Ethereum ETF being approved? This article features a detailed analysis of Ethereum price and possible targets.
Ethereum token breaks out of channel pattern:
Ethereum price managed to break out of a descending channel pattern after social sentiment for pending spot ETFs recorded a significant upswing. This resulted in the ETH token recording a breakout rally on the 1D timeframe after trading in a negative pattern since mid-March.
On a positive note, altcoin leader ETH price has risen by around 20% within the past 24 hours, marking its biggest rise in the past 36 months. This further indicates a strong bullish reversal in the crypto market.
Following the recent price spike, the Ethereum token has surpassed the $3,650 level due to increased buying interest and new capital inflow into the crypto market.
Impact of Ethereum ETF on crypto market:
The main reason for the recent market excitement can be attributed to the sharp rise in speculation about the approval of an Ethereum ETF.
Additionally, regarding spot approval changes, Bloomberg reports that ETF approvals increased from 25% to 75% following an increase in 19b-4 filings.
Due to this, the cryptocurrency industry is expected to record large price movements in the coming weeks, making an alt season more likely.
ETH market sentiment:
The simple moving average (SMA) is indicating a bullish rise on the price chart, suggesting bright prospects for the altcoin in the coming days.
On the other hand, the MACD has shown a significant increase, highlighting the increasing buying and selling pressure in the crypto space. Moreover, its RSI is hovering in the overbought range on the 1D time frame, highlighting the bullishness of the crypto market.
Is now the best time to buy Ethereum?
Assume that the market continues to trade under bullish influence. In that case, given the current market sentiment, we expect Ethereum price to retest the $4,100 ceiling this month.
However, if the Ethereum Spot ETF is approved by the SEC, the altcoin leader will likely experience new price increases in the future. This could cause ETH price to retest its previous ATH of $4,891.
Conversely, if rejected, the ETH price will lose momentum and fall towards lows in the $3,000 range.
