The bloodbath in the crypto markets seemed to be taking a pause as the weekend approached. After a sharp fall in the last couple of sessions that triggered a panic among investors, Ethereum price finally seems to be recovering.
Ethereum price climbed nearly 6% from yesterday’s low and has reclaimed back the psychological $3000 level. Few analysts are hoping for the bad days to end as soon as the SEC approves spot Ethereum ETFs.
Can Ethereum ETFs Approval Turn The Tables Again?
Ethereum ETFs could bring back the optimism in the crypto markets and aid market recovery. The Ethereum ETF approval was a dual-stage process in which the initial phase was completed with the approval of the 19b-4 documents by the issuers.
On May 23, the SEC gave the green light to 19b-4 submissions from eight contenders for ETFs. Moreover, the approval of S-1 forms by the was a later or final process which was anticipated to be completed by 2nd July.
Fwiw, Bloomberg's @JSeyff saying week of July 8th looks more likely for spot eth ETF approval…
— Nate Geraci (@NateGeraci) June 28, 2024
Another source said "it’s also a possibility that it could be later in July or later in the summer."
My take? It shouldn't take this long.
via @KathieOD_PI pic.twitter.com/M9LVhfa9vd
However, in a recent communications on 29th June, the U.S. The Securities and Exchange Commission returned the S-1 documents proposing some changes and asked the issuers to resubmit by 8th July.
Now, if the Ethereum ETFs are approved by 8th July by US SEC (Securities and Exchange Commission) it might bring a new era in the process of crypto adoption. As expected, these changes won’t only affect Ethereum, but aid the entire crypto market’s recovery.
Can Ethereum Continue To Recover Or Slump Again?
The panic selling seemed to be taking a pause today after the markets took a rebound from the previous day’s low. Despite Ethereum having reclaimed back the psychological $3000 mark, the price still hovers below the 200 day exponential moving average indicating a possible comeback by the bears.
Now, if the bulls make a comeback above the 200 day EMA it may indicate a bullish continuation and the price may head for a recovery. The transaction volume has dropped by 44% to $16.2 Billion a day indicating the waning interest of the sellers.
Moreover, until the Ethereum price hovers below the 200 day EMA, it may be at a risk of another selloff. on the lower side, the $2850 level may act as a strong support which if breaks may unlock price failure towards the $2500 levels.
What’s Next For Ethereum?
The cryptocurrency market seemed to be stabilizing after a sharp decline in the last couple of sessions, with Ethereum reclaiming back the $3000. As per a few analysts, the pending approval of Ethereum ETFs by the SEC could restore market optimism. If approved, it could mark a significant step in crypto adoption.
Furthermore, Ethereum price has recovered from the lows however it still hovers below the 200-day EMA. A positive crossover of price above the 200 day EMA could signal a bullish trend.
Transaction volumes have decreased, suggesting reduced selling pressure. However, At the current levels ETH crypto faces risk of further sell-offs until it stays below the 200-day EMA, with $2850 as critical support.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
