The crypto market has receded from the weekly peaks on the surprise approval of spot Ethereum ETFs. Prices corrected across the board on the D-Day following a cool down from the rally on Monday. At the time of writing, Bitcoin price forecast remains unchanged in the last 24 hours while hovering at $68,050. Most altcoins including Ethereum are in the red, sending mixed signals ahead of the weekend.
Why Ethereum ETFs Failed To Move The Market
The Securities and Exchange Commission (SEC) pivoted towards spot Ethereum ETFs suddenly on Monday. This followed what experts in the industry described as a political move.
ETF operators were hastily requested to update their proposals ahead of the approval on Thursday. Three exchanges were granted permission to list Ethereum Exchange Traded Products (ETPs), including the Nasdaq, NYSE, and CBOE. However, trading will not start until the SEC approves individual ETP operators.
The actual trading of Ethereum ETFs and ETPs may be delayed further, with experts fearing the SEC could drag the approval process. This likely is one of the reasons for the suppressed prices after the news.
The SEC is still concerned about fraud and market manipulation and requests that the two factors be addressed through extensive surveillance and sharing contracts. It directed that operators work closely with the Chicago Mercantile Exchange (CME) to detect and prevent fraud as well as market manipulation.
Ethereum futures prices must trade on the CME correlate with spot Ethereum ETFs. The three exchanges have submitted analyses to determine this correlation.
Bitcoin Price Forecast In The Wake Of Ethereum ETF Approval
An ascending channel continues to guide Bitcoin’s recovery on the four-hour chart. Despite the volatility, key support and resistance lines have been established in the last few weeks, since Bitcoin rebounded from $56,500.
Prevailing uncertainty may have triggered the correction from $72,000. Not all traders believe Bitcoin price has the momentum to sustain the uptrend above $70,000 let alone narrow the gap to the predicted $100,000 target in 2024.
The path of least resistance is downward based on the Moving Average Convergence Divergence (MACD) indicator. A sell signal reinforced by the MACD line’s position below the signal line and the red histograms suggest that more losses in the offing.
To overturn this bearish outlook, Bitcoin will have to flip the 20-day Exponential Moving Average (EMA) at $68,471 into support. A further breakout above the channel’s middle boundary or the hurdle at $70,000 would be required to affirm the uptrend.
On the contrary, traders cannot ignore the likelihood of selling pressure overpowering the bulls, especially if the 50-day EMA immediate support at $67,671 crumbles.
Losing support at the channel’s lower boundary, or the level at $66,000 could be detrimental to the future of Bitcoin. Such a move could bring the 200-day EMA at $65,234 into the picture amid the risk of an extended drop to $$64,000 or $62,000.
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