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As shown by today's ETH/USD chart, the price of Ethereum has increased by approximately 24% since the beginning of the week.
What is causing the surge?
According to Reuters, the SEC (the US stock market regulator) on Monday asked Nasdaq, CBOE, and NYSE to revise their applications for listing spot exchange-traded funds (ETFs) based on the price of Ethereum. This suggested that the SEC might be ready to approve the applications, according to several people familiar with the process.
Following the successful launch of Bitcoin ETFs, funds including VanEck and ARK Investments/21Shares have applied to launch Ethereum ETFs. The SEC is expected to announce a crucial decision regarding their launch process by the end of this week.
If the SEC gives the "green light," the price of Ethereum could rise even further.
Technical Analysis of the ETH/USD Chart
→ The price is within an upward trend channel (shown in orange).
→ The rise this week has formed a rebound from the lower boundary of the channel.
→ Today, the price of Ethereum is around the median line, which seems to be acting as resistance, slowing the price increase.
→ Additional resistance might be coming from the April high around the $3725 level.
→ The $3275 level, which acted as support in early April, became resistance after the bearish breakout on April 12-13. Now, after Monday’s bullish breakout, the $3275 level might act as support.
The key level appears to be the psychological mark of $4000 for Ethereum. The bulls managed to keep the price above this level for just a few days in mid-April, after which it started to decline towards the lower boundary of the channel.
It is possible that the SEC decision could serve as a strong driver for the ETH/USD rate to break through the psychological mark and settle in the upper half of the channel. If the SEC decision disappoints the crypto community, the price of Ethereum might turn downwards from the median line of the orange channel.
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.
*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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