Could $4,000 be your next move?

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Ethereum, the second-largest cryptocurrency by market capitalization, is currently at a pivotal juncture where a potential breakout is predicted.

Prominent cryptocurrency analyst Jelle recently noted that Ethereum is nearing the end of a falling wedge formation, which is often interpreted in technical analysis as a bullish signal.

Technical indicators and market sentiment

Jelle observed a descending wedge pattern on Ethereum’s chart that is emerging as ETH recently reclaimed its 100-day exponential moving average (EMA), further strengthening the bullish scenario.

According to Jelle, if Ethereum manages to maintain this momentum and break above the upper boundary of the wedge, it could target $4,000, which is a significant “psychological and technical” threshold.

The anticipation of this breakout is intensified by the current market dynamics, where at the time of writing Ethereum is trading at just above $3,000, specifically at $3,088.

The asset has seen a moderate raise of 0.2% over the past 24 hours and a total raise of 4.1% over the past week. However, looking at the price chart, Ethereum appears to have consolidated just above the $3,000 level, suggesting a base is being built for future significant moves.

ETH price is consolidating on the 30-minute chart. Source: ETH/USDT incl

This period of consolidation, often called accumulation, may be largely due to market participants waiting for the U.S. Securities and Exchange Commission’s (SEC) upcoming decision to approve the long-awaited Ethereum spot ETF.

With this critical announcement expected later this week, buyers and sellers appear to be holding out, cautiously awaiting news that will likely determine their next strategic moves.

Regulatory decisions and market speculation regarding Ethereum

So far, Bloomberg senior ETF analyst Eric Balchunas has expressed a cautious stance on the Ethereum spot ETF estimating only a 25% chance that the spot ETF will receive approval.

On the other hand, Nate Geraci, president of ETF Shop, revealed that the ETF approval process involves several key steps, including approval of both 19b-4 filings (changes to exchange rules) and S-1 registration statements (pre-registration forms for novel securities). .

While there is optimism that 19b-4 filings may be approved, there is less certainty regarding the S-1. The SEC’s ponderous involvement in these filings may indicate an extended review period, which could delay the launch of spot Ethereum ETFs.

Featured image from Unsplash, chart from TradingView


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