How will the price of Ethereum continue after the approval of ETF?

The approval yesterday in the United States of the exchange-traded funds (ETF) of the Ethereum cryptocurrency, ether (ETH), barely moved the market. This gave rise to new price projections for the asset.

As seen below, ETH rose to $3,900 (USD) following the approval. However, it then returned to the lateralization range that it has maintained for four days, mostly between USD 3,600 and USD 3,700.

Analyst Michaël van de Poppe explained that this stillness in the ether market shows that “the approval was already discounted due to the strong movement of 20%.” Precisely, the cryptocurrency experienced a rise of such a percentage this week as expectations of an ETF approval grew.

There is now a waiting period until the ETFs go out and quote, something that, as reported by CriptoNoticias, is estimated for mid-June. “Then the inflow of capital will determine if there is a strong continuation upwards,” she said.

Beyond the lack of big movement, van de Poppe maintained that this week has been “extremely positive” for the cryptocurrency market with the approval of Ethereum ETFs. He attributes this event as a great step forward for adoption.

In tune, analyst James Van Straten considered that “the week has been wild in terms of regulatory advances for the cryptocurrency industry.” “Most likely, the approval of the ETH ETF marked a local high,” he emphasized.

Therefore, does not see upward continuation until launch, when capital flows into ETFs determine the direction of the market. “Time will tell,” he commented.

Meanwhile, specialists such as the investor known as Jelle project that the market will resume its rise before the launch.

“After ETH ETFs were approved yesterday, the market is now finding out that it will still be a while before they go live,” Jelle said. As such, he foresees choppy price action at least until after the weekend while trying to figure out the next narrative.

In his opinion, A “buy the rumor” scenario will continue until ETFs are launched that drives the price of ETH higher. and a massive sale when the event happens. Therefore, under this projection, the market could experience a pullback after the launch, if capital inflows into the new funds do not offset the supply.

There are key prices that ETH should maintain to continue rising

According to the trader known as Crypto Tony, “maintaining USD 3,500 is key now.” This level served as support-resistance for part of 2024, as seen below. Therefore, he believes that a decline to that point would form a solid floor to continue rising.

Added to this, the technical analyst and on-chain Ali Martínez distinguished that various indicators reflect a possible increase in profit taking. He pointed to the growing deposits of ETH on exchanges in May as examples, as well as the sharp rise in price this week that may boost sales.

The analyst clarified that since around 1.66 million ETH were purchased between USD 3,820 and USD 3,700, this price zone could be sustained. But if it doesn’t hold, the next key support area you see is between $3,580 and $3,462, where over 1.50 million ETH was purchased.

Meanwhile, the most important resistance barrier for Ethereum remains between USD 3,900 and 4,000, the highest in more than two years that hit two months ago. “If ETH clears this hurdle and prints a daily candle close above $4,170, the bearish outlook will be invalidated,” he emphasized.

“This could result in a new countdown phase towards USD 5,000,” concluded the analyst. At the moment, the cryptocurrency’s all-time high was almost USD 4,900 in November 2021 during the previous bull cycle. This is unlike bitcoin (BTC), which set a new record this year, boosting ETH, as it could continue to do in the face of a rally.