Ethereum Eyes $4,800 on ETF Hopes: How to Trade the Potential Surge

Ethereum has broken out of a downtrend and is now on the rise.

SEC’s ETF decision looms and we will discuss key levels to watch before trading the crypto.

Positive news could propel the crypto toward $4,800.

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Cryptocurrency markets are off to a hot start this week, building on last week’s recovery signs. While flirted with the $70,000 mark again, has been the true star.

Ethereum has skyrocketed 25% since the beginning of the week, clawing back significant losses incurred since March. This surge is fueled by escalating rumors that the SEC might finally approve a spot Ethereum ETF. In recent months, Ethereum has been in a downtrend due to concerns about delayed spot ETF approvals.

Our previous analysis of Ethereum identified a falling triangle pattern dictating its price action. The support line, holding firm since April around $2,800-$2,900, formed the triangle’s base. The downtrend continued through the first half of May, squeezing the ETH price.

Last week, buyers successfully defended the support level, propelling Ethereum back above $3,000. This price action signaled a bullish breakout from the falling triangle pattern.

SEC Decision Looms Large: Key Levels to Watch

Ethereum’s breakout is likely to continue, potentially reaching the $3,800 region based on the previous downtrend and the falling triangle pattern’s measurement. Looking at Fibonacci retracement levels, resistance is expected around Fib 0.786, translating to $3,830. Conversely, the closest support lies at Fib 0.618, or $3,630.

The SEC is set to announce its final verdict on VanEck’s application, the first for an ETH ETF. A positive decision is expected to trigger immediate bullish sentiment. If Ethereum breaks past the $3,800 resistance, it could potentially climb toward the Fibonacci expansion zone of $4,400-$4,800. The $4,090-$4,100 range could act as intermediate resistance on this upward trajectory.

How to Trade Ethereum Ahead of SEC Decision

The Ethereum market has been in a holding pattern for the past three days. The key level to watch for support sits at $3,630. If selling pressure intensifies and Ethereum breaks below $3,600, further support levels could come into play at $3,480, $3,350, and $3,170.

On a brighter note, the recent passage of a crypto-friendly bill by the U.S. House of Representatives injected some optimism into the market. This bill signifies a positive step towards establishing a regulatory framework for the world’s largest crypto market. However, its impact remains uncertain as the SEC has voiced opposition, and the Biden administration also has some reservations.

Today’s decision from the SEC on Ethereum spot ETFs has become a major focal point for Ethereum and related altcoins. The market generally expects a green light, and recent buying activity suggests support for this move. Nevertheless, the crypto market is known for its volatility, so close attention to support and resistance levels is essential.

While most anticipate the SEC’s approval, the possibility of a surprise decision can’t be ruled out. Keeping a close eye on key support and resistance levels will be crucial for informed trading decisions in this uncertain environment.

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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple points of view and is highly risky and therefore, any investment decision and the associated risk remains with the investor.