The big day for the Ethereum spot ETF is around the corner, and speculations are running high once again. Until yesterday, the crypto markets were pricing in a rejection of Ethereum spot ETFs by the SEC. However, yesterday, the sentiment changed.
Bloomberg’s senior ETF analyst, Eric Balchunas, tweeted that they are increasing the odds of ETF approval to 75%, which served as the final catalyst for a breakout. After the tweet, ETH jumped more than 18% in just six hours. The final deadline for the first ETF is Thursday, which might determine the short- and medium-term direction.
(Inflation Adjusted S&P 500 Total Return Index)
Yesterday’s breakout also aligns with the technical outlook. After testing the blue trendline, ETH broke the falling wedge and then tested it back. Following the test, the breakout occurred and is now closing in on the 38.2% extension. The 3800 level might limit the upward movement for now, but speculations are likely to continue either way. Crypto traders should brace for a wild roller coaster in the coming days.
The key resistance to follow will be 4100. Being both 50% of the extension and the previous top, this level will carry some weight. In the case of approval, combined with a breakout above 4100, ETH might surge as much as 4775. However, if the application is denied, this week’s positivity might reverse all the way back down to the uptrend at 3000, and even that support might not be safe.
