Bullish Breakout Continues in Ethereum, With ETH ETF Near

In January the SEC approved the Bitcoin ETF, which improved the crypto market sentiment. Now it's the turn for a spot Ethereum ETF

Skerdian Meta•Tuesday, May 21, 2024•2 min read

In January the SEC approved the Bitcoin ETF, which improved the crypto market sentiment. Now it’s the turn for a spot Ethereum ETF, which is drawing near, and the bids in the crypto market have increased once again. Bitcoin jumped above $70,000 earlier today, while Ethereum is approaching $4,000.

The SEC’s more favorable stance on spot Ether ETFs has boosted market confidence, driving Ether to a high of $3,832.50. This shift in sentiment has prompted market analysts to raise their approval probability three fold to 75%, due to increased discussions about expedited 19b-4 filings.

Ethereum Chart Daily – Surging After the Break of the 100 SMA

This positive outlook on Ethereum ETFs has also spurred a broader rally in the cryptocurrency market. Bitcoin surged past $70,000 yesterday reaching a high of $71,958. Although it has pulled back slightly, it is still trading robustly just below $70K by the end of the day.

Bitcoin Chart Daily – Heading for New Record Highs

Ethereum has continued its upward momentum that started yesterday, climbing from a low of $3,049. The rapid increase has pushed Ethereum’s price up by more than 25% over the past two days. The recent peak price for Ethereum this year was $4,092.80 on March 12. Since then, the price had declined, testing the 50% midpoint of its rise from the October 2023 low of $2,807.20. Support buyers managed to hold this level through fluctuating trading until the recent breakout over the last two days, driven by the optimistic outlook for ETF approval.

Ethereum is now approaching a retest of the March 12 high at $4,092.08. Breaking beyond this level would mark the highest price since December 2021, with Ethereum’s all-time high standing at $4,866.90. Meanwhile, Bitcoin, having peaked at $71,958 today, is drawing closer to its April peak. The positive developments regarding potential ETF approvals have clearly energized the cryptocurrency market, with significant gains seen in both Bitcoin and Ethereum, suggesting strong bullish sentiment among investors.

Ethereum Live Chart

ETHEREUM

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.