Ethereum Price Analysis: To Buy or Not To Buy Before The ETF?

As the bull run in Ethereum continues for the second day with a 3.49% jump, the altcoin asserts dominion over the $3700 level. Amidst the bull run, the key factor remains the Ethereum Spot ETF and the U.S. SEC. 

The market sentiments anticipate a positive outcome as the U.S. SEC is scheduled for VanEck’s application hearing on the Ether ETF. A positive hearing will boost the institutional and retail investment into the asset, just like Bitcoin or Gold, due to the additional credibility. 

With the broader market and the underlying demand teasing the $4,000 breakout for Ether, let’s have a closer look at its chart. Will the ETH price continue the bull run, or will the demand fade after a negative outcome from the SEC?

Check our Ethereum price analysis for a study on the short-term price movement. For a long-term perspective on whether the bull run in ETH price reaches $10,000, check out our Ethereum price prediction.  

Ethereum Brings A Roundabout

In the monthly chart, the bull run in the ETH price trend forms a rounding bottom pattern. The neckline for this bullish trend continuation pattern is at $4635. Currently, the bullish comeback with the broader market recovery signifies a high likelihood of a breakout. 

With the 25% rise, the bullish engulfing monthly candle teases a trend continuation. Further, the comeback in ETH price starts with the successful retest of the 50% Fibonacci level. 

In the 1D chart, the ETH price displays a bullish breakout of a falling wedge pattern going straight up. The uptrend challenges the trend-based 50% Fib level and the $3800 level. 

The bullish crossover in the MACD and signal lines continue to rise and diverge, reflecting a surge in underlying demand. 

Key Catalyst The Ethereum ETF

The broader market understands the ongoing rally in the ETH price completely depends on the Ethereum ETF news. As the predictions of market gurus have increased from 25% to 75%, the general trend is bullish. 

However, the SEC’s decision is independent of the market, and it may delay the hearing until the next date. In such a case, a pessimistic wave could increase the supply pressure in the $ETH charts. 

Hence, the buyers must be careful when buying the rumor because it may soon turn into a sell-the-news phase. 

So, let’s consider the options and find out where the Ethereum price will head in either situation. 

Ethereum ETF Gets Approved

If the U.S. SEC approves the Ethereum ETF this Thursday, the market can go ballistic and give massive returns in altcoins linked to Ethereum. The ETH price itself could see an outstanding rise in demand, propelling it well above $4600 for a new all-time high. 

The ETF Gets Delayed

If the SEC delays its decision or, worse, rejects the proposal, the markets will be more volatile than ever. The ETH price could slide below the $3600 support to test the $3273 level. An intense profit booking or sell-the-news wave could risk the $3000 level.