The recent upswing, followed by the approval of the spot Ethereum ETF, appears to be a short-lived rally as the markets have begun to consolidate. The Ethereum price had also soared close to $4000 but before reaching these levels, the token faced extreme upward pressure. Besides, the Bitcoin price has remained stuck between $67,000 and $67,500 since the early trading hours. Therefore, the current trade set-up indicates the price may follow the previous trend, which ended in a huge retracement of over 20%, which prevailed for over 10 days.
It was a good day for the crypto space, as after Bitcoin, the Ethereum ETF has also been approved by the SEC. The markets reacted positively as the prices of ETH and other popular tokens breached their respective resistance levels. It is a known fact that Ethereum closely follows the Bitcoin price trend and if history repeats itself, then the ETH price may face a huge plunge.
The Bitcoin price retraced from $47,000 and reached levels below $40,000 soon after the launch of the spot ETF. This also compelled the other major tokens, including the ETH price, to face a huge pullback. This seemed to express the proverb, ‘Buy the rumour, sell the news,’ which flashed the possibility of the ETH price also mirroring a similar trend and as a result, the ETH price may correct for a while similar to BTC.
The ETH price managed to break the heavy resistance zone around $3500 with the help of a classic falling wedge. On the other hand, the ETH/BTC also broke above the key resistance line, which continues to flash bullish signals for the crypto and many other altcoins. Hence, if the markets begin to rise, the ETH price may quickly rise, which could be a major signal of the beginning of an altseason.
Currently, the prices of both Bitcoin & Ethereum appear to be at the foothill of a fresh descending trend. Hence, if the bulls fail to defend the local support, a plunge below $3500 or $3300 may be expected. Meanwhile, if the bulls manage to trigger a rebound, the Ethereum (ETH) price may begin a fresh upswing to find new ATH above $5000.
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