Last week, the likes of Ethereum in the crypto market were shaken when the United States Securities and Exchange Commission (SEC0 revealed that it found the Bitcoin Spot ETF filings of giants such as BlackRock and Fidelity, among others, inadequate. This news saw the price of cryptocurrencies declines rapidly. But as the new week opens, investors have shaken off the effect of the announcement and bulls have begun to take over.

Ethereum Sets Sight On $2,000 Level

Ethereum’s recovery following the SEC announcement has been encouraging for investors, leading to a return of positive sentiment around the digital asset. Following this, ETH is now looking toward the $2,000 level despite the bears currently mounting significant resistance at this point.

The digital asset has already reclaimed the $1,950 resistance which is now serving as support. As a result, this could provide the much-needed bounce-off point as the cryptocurrency attempts another rally. Such a rally from here could easily see ETH re-take $2,000 once more.

Fortunately, Ethereum continues to trade well above its 50-day and 100-day moving averages, both of which have helped the digital asset to solidify its bull momentum for the short term. As long as buyers continue to dominate the market, the break above $2,000 is programmed and will likely be achieved before the week runs out.

Ethereum price chart from TradingView.com

ETH sitting close to $2,000 | Source: ETHUSD on TradingView.com

Factors That Could Propel ETH Forward

One thing that could serve as a catalyst for a rally toward $2,500 for Ethereum would be approval from the United States Securities and Exchange Commission (SEC). The Spot ETF filings that have been made by the likes of BlackRock and Fidelity have already propelled the market forward. But this is only a fraction of what is possible if one or more of the ETFs are approved.

Such approval will likely see billions of dollars from institutional investors flow into the market as they rush to take advantage and gain exposure to assets such as Bitcoin. And as seen before, it would not be long until an Ethereum Spot ETF follows.

If this happens, then it could not only trigger a rally toward $2,500 for Ethereum. But it could be just the catalyst that the market needs to enter another bull season. Furthermore, an approval coinciding with the Bitcoin halving next year would see prices rise rapidly.

For now, ETH is still maintaining its position, trading at a price of $1,967. This accounts for a 2.68% increase in the last day and a 3.88% increase in the last week.

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from iStock, chart from TradingView.com


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *