Ethereum (ETH) is as we begin a new week. Ethereum is currently trading at $3,195 and is up by 1.83% in the past 24 hours. Although Ethereum’s gains are part of a wider market rally after a rebound, the altcoin is in the best position to surge the most in the coming weeks.
Fundamentals point to an extended price surge in the face of a looming launch of Spot ETFs. Additionally, technical indications are pointing to a bullish outlook for Ethereum as it approaches a crucial resistance level around $3,250.
Ethereum Basking In Bullish Sentiment
Ethereum is now looking to break above $3,200 after trading for the majority of the week below $3,100. Although Ethereum broke above $3,000 again last week, the king of altcoins largely consolidated between $3,000 and $3,100 in what looked like a slowdown of bullish sentiment.
However, on-chain analytics and fundamentals point to Ether still basking in bullish sentiment among investors. Majority of investors are waiting for a signal before jumping on the asset.
For starters, there’s a growing sense that Ethereum Spot ETFs could be on the horizon. VanEck and other potential issuers amended their filings earlier in the week in hopes of receiving the SEC’s final permission. It could be a game changer for the crypto market in 2024 if Spot Ethereum ETFs start trading.
According to Thomas Perfumo, Head of Strategy at Kraken, the Spot ETFs could open up an additional $1 billion inflow into Ethereum monthly. This new inflow of demand and money could see Ethereum push past its current all-time high of $4,900 into new price territories above $5,000.
According to multiple reports, things are for the approval of these Spot ETFs, and the potential for approval by the SEC has jumped massively. As noted by Eric Balchunas, senior ETF analyst at Bloomberg, everything is already in place for the approval of the ETFs, and it is unclear why the SEC is taking so long. This has led to an increase in a bullish case for Ethereum for the rest of the month.
Yeah, rn it’s all quiet on the Western Front re eth ETFs. Nada from SEC this week. Unclear why they taking such sweet ass time. Every issuer is ready. Docs are ready. It’s like a rain delay in baseball. Gotta just wait. Maybe things will move fast next week. We’ll see… — Eric Balchunas (@EricBalchunas)
Indicators Looking Bullish
On the technical side of things, technical indicators also support a bullish outlook. According to the daily candlestick chart, Ethereum is on its way to closing its third consecutive bullish daily candle for the first time since June 16. The crypto is also attempting a break above the 100 SMA. A break above the 100 SMA in correlation with a bullish daily close could solidify the bullish momentum as we head into a new week.
Featured image from Reddit, chart from TradingView
