Bullish momentum may drive ETH towards $3,000, with indicators reflecting positive market sentiment.
It has recently been reported that the price of Ethereum has experienced a significant boost, with the price growing by 8.5% in only twenty-four hours and seeing a 15% gain over the course of the preceding week.
Therefore, as a consequence of this exceptional surge, the price of ETH has surpassed the $2,500 mark, a level that has not been seen since May 2022. After the approval of Bitcoin spot ETFs, which triggered the momentum that followed, investors started to speculate on the anticipated approval of Ethereum’s spot ETFs.
This was the beginning of the excitement that followed. With purchasing and selling pressure seeking to define a clear direction for the market, the price of Ethereum has fluctuated between $2,200 and $2,300 over the past several days.
A clear path for the market has been attempted to be defined. Even though the market immediately gained traction, which enabled ETH to break away from this area, the price of ETH is now hovering around $2,641.
The bulls were able to reclaim control of the market and push the price past $2,600 after a brief period of decline followed by consolidation. Even though they were met with opposition at $2,450, this was eventually accomplished.
ETH ETF Anticipation Stimulates Market Optimism
Since the historic approval of eleven Bitcoin spot ETFs on January 10, 2024, the cryptocurrency market has been brimming with hope. This approval represents a significant milestone.
As a consequence of this new development, the introduction of Ethereum spot ETFs later in the year has been more eagerly anticipated than it was previously. An analyst for Bloomberg ETFs named Eric Balchunas has predicted a seventy percent chance that the Ethereum exchange-traded fund (ETF) will be approved by May.
This prediction has further stoked the excitement already present in the industry. If the bulls continue to maintain their momentum and push Ethereum past the resistance level that was established around $2,700, there is a possibility that the price of Ethereum may be able to test the $3,000 mark.
There is also the possibility that an attempt to break through the $4,000 barrier in the not-too-distant future may be possible if this level is maintained. On the other side, if bearish tendencies continue to prevail, Ethereum can face a decline in value.
There is a possibility that it will approach the support levels at $2,500, and it may fall to $2,450 by the weekend. As a result of the way the Ethereum market is functioning, an optimistic disposition is strengthened.
Technical Indicators for ETH Signal Bullish Trends
The indicator of Moving Average Convergence Divergence (MACD) displays a rising green histogram, which shows that purchasing pressure is more widespread than selling pressure. This is because the MACD indicator displays an increasing green histogram.
Given that the MACD and signal lines are both situated above the zero line at the moment, this is an indication that bullish pressure is currently present. The Chaikin Money Flow (CMF) indicator, which now has a positive value of 0.42, is another indication that indicates a strong desire to acquire shares of the company.
Indicators of technical analysis that are based on a time frame of four hours lend credence to this optimistic forecast. There is a large amount of purchasing pressure, as shown by the fact that the Relative Strength Index (RSI) has reached a value greater than 70.
Consequently, this suggests that the market has entered the zone of being overbought.
The fact that the 20-exponential moving average (EMA) is situated above the 50-exponential moving average (EMA) indicates the bullish direction the market is now exhibiting.
The bulk of the moving averages and oscillators on the four-hour chart indicate purchasing pressure, which suggests that the asset will continue to move in an upward direction in the short term. This was found to be the case.