Overnight, the sentiments in the crypto market have turned extremely bullish, leading to massive gains in the top blue-chip cryptocurrencies. The prices of Bitcoin and Ethereum have surged 7.73% and 19.23%, respectively.
With this surge, Bitcoin trades at $70k, and Ethereum has surpassed the $3,600 level. The main catalyst behind the boost of optimism is the SEC’s demand that the exchanges expedite the 19B-4 document updates on the Ethereum ETFs. With this proactive move of the SEC, the probability of approval of the spot Ether ETFs has remarkably improved.
With the growing anticipation, the bulls expect the uptrend to soar in the coming days and Ethereum to make new highs. But will this momentum be sustained, or is it just a news-based move?
Let’s find out more in our detailed analysis below.
Ethereum’s Outstanding Performance
The ETH price shows a bullish trend, with a massive engulfing candle undermining the pullback phase. The Ether price action breaks out of a bearish wedge pattern in the daily chart.
The Ethereum price trades at $3,713 with an intraday gain of 7.40%, following the 19.23% surge last night. Further, the bull run breaks above multiple resistances to breach the 78.60% Fibonacci level at $3,671.
Moreover, the massive jump now challenges the supply zone near the 78.60% Fib level. As the wedge breakout rally gains momentum, the chances of a bull run beyond $4,000 grow stronger.
Based on these retracement levels, the bull run could easily push Ether to the $5,294 mark or the 1.618% Fibonacci level if the SEC decides to approve the ETH ETF.
Bulls Looking Out For The Ethereum ETFs
The recent surge comes with the SEC’s proactive move on Ethereum’s ETF, improving the chances remarkably in just a day. According to the decentralized betting platform Polymarket, the odds of approval have increased from 11% to 54%.
Bloomberg analysts Eric Balunchas and James Seyffart, big names in the crypto world, have increased their odds of a Spot ETH ETF Approval from 25% to 75%. Supporting the news, Fidelity has filed an updated S-1 application for the spot Ethereum ETF.
If the SEC approves the Ether ETF application, the latest decision coming on VanEck’s $ETH ETF on May 23rd, the market might go ballistic.
On-Chain Activity and Rising Exchange Reserves
Ethereum has broken new ground as the market buzzes, anticipating potential ETF approval. As per Cryptoquant, the Ethereum on-chain activity heats up, with transfer volume soaring by 124.73% within 24 hours to reach 2,257,380 ETH. Further, the active addresses jumped by 11.74% to 501,829, with transactions up by 4.72%, hitting 1,177,808.
Meanwhile, exchange reserves have risen to 14,029,117.58 ETH, indicating higher selling pressure. Despite this, net deposits on exchanges are low, signaling lower immediate selling pressure and showcasing strong confidence among traders.
As Ethereum’s on-chain activity grows strong and optimism around ETFs grows, the bullish stage is set for $ETH.
Where’s The Ethereum Bull Run Headed?
The market bulls are ready with an increased chance of getting approval for VanEck’s Ethereum ETF application this Thursday. However, if there is a 25% chance of a delay or rejection, the ETH prices may consolidate or undergo a minor correction.
Eric Balchunas supports the 35% viewpoint by stating that the SEC wanted a minor update on the 19B-4 filing.
Hence, a bullish viewpoint predicts a run to $5,234, potentially heading to $6,000 if momentum sustains. On the contrary, the bottom support for the Ether price is at $3400 and $3250.