Ethereum Flying on Spot ETF Hopes, ETH Bulls Looking At $4,900

Ethereum is rallying, adding roughly 30% in the past week. Still, in the days to come, ETH bulls are targeting $4,100 and all-time highs

Dalmas Ngetich•Wednesday, May 22, 2024•2 min read

Ethereum extended gains yesterday, breaking above $3,700 as optimism around a spot ETF approval rose. Technically, the confirmation of May 20 bulls is a step in the right direction. As it is, every low may offer bulls a chance to double down, targeting $4,100 and March 2024 highs in the days ahead. Even so, buyers must also soak in all attempts to reverse losses. The zone above $3,300 will be a crucial zone for bulls to search for entries in the sessions ahead.

Reflecting the state of ETH affairs, prices are up 2% in the past 24 hours and roughly 30% in the previous week. Considering the sharp uptick in both trading activity and prices, the average trading volume shot to over $33 billion in the past trading day. This represents a more than 3X jump from last week’s average. Engagement will continue to rise as more traders explore ETH and search for entries.

Ethereum daily chart for May 22

The following Ethereum news events are worth watching:

Yesterday, Grayscale filed an updated 19b-4 for their spot in Ethereum ETF. The firm plans to convert its Ethereum Trust to a spot ETF just like it did for GBTC. The filing is a formal application to the United States SEC, which intends to issue the product to the client.
Standard Chartered says the United States SEC might approve the first spot Ethereum ETF this week. If this happens, the global bank expects inflow of between $15 and $45 billion into this product in the next year.

Ethereum Price Analysis

The Ethereum uptrend is clear, looking at the performance in the daily chart.

With ETH/USD up double digits in the past week, bulls expect trend continuation.

The $3,700 level is an interest support. Any retest to this level might offer entries. However, if there is a deeper correction held above $3,300, traders might find even better opportunities to double down.

From the Ethereum candlestick arrangement, the first target will be March 2024 highs of $4,100. Even so, considering the recent rapid expansion, ETH bulls should consider $4,900 as the next feasible target.