Key Takeaways:
- Ethereum rallied 20% after reports that the SEC asked exchanges to update 19B-4 filings for Ethereum Spot ETFs.
- ETH/USD cleared a major bearish trend line with resistance at $3,240 on the daily chart.
- The price cleared the $3,500 resistance and might rise further toward $4,000.
New Delhi(Coinchapter.com): Ethereum (ETH) is up over 20% and trading above $3,620. ETH could correct lower, but there are high chances of more upsides above $3,720.
Ethereum Price Regains Strength
In the past few hours, Ethereum price saw a massive increase from the $3,050 support. In an update, the SEC asked exchanges to update 19B-4 filings for Spot Ethereum ETFs. It sparked a strong increase in ETH and the price jumped over 20%. More importantly, the odds of spot Ether ETF approval increase from 25% to 75% (according to Bloomberg ETF analyst).
The price cleared a major bearish trend line with resistance at $3,240 on the daily chart. There was a decent increase above the 50% Fib retracement level of the downward move from the $4,082 swing high to the $2,848 low.
Ethereum settled well above the $3,500 level and the 50-day simple moving average (blue), outperforming Bitcoin. The price is now testing the $3,720-$3,740 resistance zone.
The last daily candle suggests a strong bullish momentum above the $3,500 level. On the upside, immediate resistance is near the $3,720 level. The first major resistance is near the $3,800 level the 76.4% Fib retracement level of the downward move from the $4,082 swing high to the $2,848 low.
A clear move above the $3,800 resistance could spark another increase. In the stated case, the price might recover and test the $4,000 resistance. The next major resistance is visible near the $4,080 level. A close above the $4,080 resistance could send Ether higher toward $4,200. If the bulls clear the $4,200 resistance, the price could visit the $4,320 resistance in the near term.
Short-term Pullback In ETH?
Conversely, Ethereum might fail to settle above $3,800 and start a downside correction. Immediate support sits near the $3,640 level. The first major support is now near the $3,400 zone.
A downside break and a daily close below $3,400 might send ETH toward the $3,240 support and the 50-day simple moving average (blue). If the bulls fail to protect the $3,240 support, the price could dive and test the $3,000 support.
Overall, Ethereum price is gaining bullish momentum above the $3,500 zone. If ETH settles above $3,800, there could be an easy drift toward the $4,000 level.
