Ethereum ETF is finally here!!!. After several uncertainties, the long-awaited exchange-traded fund finally received approval from the Securities and Exchange Commission.
At the start of the filing, many analysts termed the probability of approval at 25%. Nonetheless, the SEC recently advised all filers to update their request a few days ago. The move spotlighted the regulator’s willingness to give the instrument a nod, increasing its chances by 50%.
Ethereum Price Holds Steady
With the ETH ETF’s arrival, the market is expected to react with notable surges. However, this is yet to happen as several assets are holding on to their various price marks. To this effect, the next candle following the announcement on the 2-hour time frame is red, indicating an opposite reaction.
Ethereum’s 20:00 candle (which bears the announcement) shows the largest altcoin recovering from a decline to $3,500. This comes after it surged to continue its climb to $4,000. This time, it failed to gain stability above $3,900 due to rejection.
The current candle is red as the coin slips to $3,800. If the downtrend continues, the coin will drop as low as the fourth pivot resistance at $3,600. Following its previous dip below it, the coin will drop as low as the third pivot support at $3,400.
On the one-day chart, the relative strength index (RSI) explains the reason for the most recent price decline. RSI climbed above 70 on May 20 in reaction to the asset’s surges. It remained above this mark and is trending above it at the time of writing. With ETH being overbought, it is due for corrections. The current price struggles are an indication of an impending retracement.
The first pivot resistance at $3,543 is one of the critical levels. Due to the concentration of demand around it, the altcoin may rebound and hold prices that hover around it, as seen a few hours ago. It is also worth noting that a slip will send the cryptocurrency as low as $3200.
