Prominent crypto analyst Jelle recently pointed out that Ethereum is nearing the end of a falling wedge pattern, a situation often interpreted as a bullish signal in technical analysis.
Technical Indicators And Market Sentiment
Jelle observed a falling wedge pattern on Ethereum’s chart, which emerges as ETH recently reclaimed its 100-day Exponential Moving Average (EMA), a development that further bolsters the bullish case.is close to breaking out from this falling wedge! After reclaiming the 100-day EMA, all it needs is a little push to break out from the multi-month continuation pattern. Target: >$4000. 👀📈 — Jelle (@CryptoJelleNL)
The anticipation of this breakout is heightened by the current market dynamics, where Ethereum is trading just above $3,000, specifically trading at price of $3,088, at the time of writing.
The asset has experienced a modest increase of 0.2% in the last 24 hours and a total of 4.1% over the past week. However, looking at the price chart, Ethereum appears to have been consolidating just above the $3,000 level, suggesting a building base for future significant movement.
This consolidation period, often called accumulation, may be largely due to market participants awaiting the upcoming decision from the US Securities and Exchange Commission (SEC) on the approval of the much-anticipated spot Ethereum ETF.
With this critical announcement expected later in the week, buyers and sellers appear to be in a holding pattern, cautiously awaiting the news that will likely determine their next strategic moves.Ethereum Regulatory Decisions And Market Speculation
So far, Bloomberg’s Senior ETF Analyst, Eric Balchunas, has expressed a cautious stance concerning the spot Ethereum ETF that the spot ETF will receive approval.SEC decision deadline this week on spot eth ETFs… SEC must approve both the 19b-4s (exchange rule changes) & S-1s (registration statements) for ETFs to launch. Technically possible for SEC to approve 19b-4s & then slow play S-1s (esp given reported lack of engagement here). — Nate Geraci (@NateGeraci)Featured image from Unsplash, Chart from TradingView