Ethereum and the entire altcoin market have seen explosive growth following Bloomberg’s latest assessment that the probability of an Ethereum ETF approval has surged to 75%, up from the previous 25%. As highlighted by Santiment, a top analytic firm, this news has driven Ethereum’s price above $3,650 for the first time since April 9, with the cryptocurrency now trading at $3,662.01. Over the past 24 hours, Ethereum’s price has increased by 17.43%, with a trading volume reaching $37.1 billion.
As further noted by Cryptoquant, an on-chain analytic firm, Ethereum’s net taker volume on Binance has reached an all-time high. Net taker volume measures the difference between buying and selling volumes facilitated by market orders, which prioritize positioning over price. In the wake of the ETF specialist’s announcement, Binance traders executed substantial long positions on Ethereum.
Consequently, in one notable candle, the taker buy volume outstripped the taker sell volume by $530 million, marking the largest such candle on record. This activity indicates that Binance traders are highly optimistic about the Ethereum ETF news, driving a frenzy of taker orders.
According to Crypto Busy, an analyst, the likelihood of the SEC approving a spot Ether ETF has been significantly increased as analysts Eric Balchunas and James Seyffart place the odds at 75%.
The SEC’s final decision on the Ether ETF is expected this week, and the market is bracing for the outcome. If the ETF is declined, Ethereum’s price could react negatively. However, if approved, there might be an initial sell-off at resistance levels, followed by a substantial price increase.
The cryptocurrency has been consolidating within a triangle pattern for 70 days, with major resistances at $3,200 and $3,350. Currently, Ethereum’s 1-day stochastic RSI reads 94.52, indicating an overbought market and suggesting a potential short-term pullback.
Additionally, the 1-day MACD is trading above the signal line, reflecting ongoing bullish momentum. However, traders should be cautious as a reversal could occur if the MACD dips below the signal line. The 1-day ADX reading of 22.44 suggests a moderate trend, indicating the trend may not be strong enough to sustain further price increases without a potential correction.
