Ethereum Mega Regulatory Relief: ETH Heading To $3,700, Time to Load on Dips?

Ethereum is edging higher at press time. However, unless there is a break above $3,700 and even $3,900, ETH bears have the upper hand

Dalmas Ngetich•Thursday, June 20, 2024•2 min read

Ethereum is trending higher at press time, looking at the formation in the daily chart. Even though there were movements yesterday, all that is needed is the confirmation of those gains today. Should Ethereum close higher, preferably near $3,700, traders will have a reason to closely turn their attention to price action once more. Currently, the path of least resistance is southwards and will only change if there is a decisive close above the June 11 high.

Considering the expansion on June 19, Ethereum is higher at press time, adding 2% on the last day. At the same time, the coin is up 3% in the previous trading week. Even though yesterday’s gains were mostly fundamentally driven, there was not much change in participation. As it is, the average trading volume on the last day rose to around $13 billion.

Ethereum daily chart for June 20

The following Ethereum news events are worth monitoring today:

In a major win for crypto and Ethereum, ConsenSys, the development firm, said they received communication from the United States SEC notifying them that the agency won’t proceed with their investigation of Ethereum 2.0. This means that the Commission is changing its tune on ETH, possibly considering it as a commodity similar to Bitcoin.
Following this news, on-chain data shows that a whale withdrew 16,604 ETH from Binance in the last three weeks or so. Yesterday, the same whale bought 5,603 ETH.

Ethereum Price Analysis

ETH/USD is bearish despite yesterday’s gains.

As Ethereum moves back in range, as the daily chart shows, aggressive traders might look to fade the trend by shorting on every attempt higher. Their immediate targets would be $3,300, aligning with the bear bar of June 11.

However, a safe approach would be to wait for a breakout in either direction, lifting ETH above $3,700 or forcing it below $3,300.

Since the community expects the United States SEC to approve a spot Ethereum ETF, sentiment is high and bulls are confident. Therefore, there is a high chance of the coin flying above $3,900 in the sessions ahead.