SEC’s Role in the Market
Since July 21, Ether’s price has been trading within a narrow range of $1,800 to $1,900. The approval of the first Bitcoin ETF in the U.S., however, could help propel ETH past the key $2,000 resistance level.
Mike Novogratz, CEO of Galaxy Digital, citing sources at BlackRock and Invesco, suggested that the U.S. Securities and Exchange Commission (SEC) is likely to approve these Bitcoin ETFs within the next four to six months.
Such a decision could significantly increase Bitcoin’s demand, which would positively impact the prices of Bitcoin and other cryptocurrencies, including Ether. Historically, Bitcoin’s upward momentum boosts investor confidence, leading to a ripple effect across the crypto market.
Additional positive developments include PayPal’s launch of an Ethereum-based stablecoin, signaling a potential step toward mainstream adoption of Ethereum.
However, Ethereum faces challenges, including high gas fees, which deter demand for its decentralized applications (DApps). Over the past two months, average transaction fees have exceeded $4, causing a 25% drop in active users on Ethereum’s primary DApps over the last 30 days.
Challenges Facing Ethereum Network
Ethereum has also seen a decline in the total value locked (TVL) on its network. Combined with low volatility, these factors have created uncertainty among investors.
While bullish developments like potential ETF approval and PayPal’s user base adoption are promising, Ethereum’s high costs and operational challenges may push ETH prices below $1,800. Investors should maintain a cautious approach, and “short” traders may consider monitoring Bitcoin for signals while preparing short positions.
The SEC recently delayed its decision on ARK Investment Management’s Bitcoin ETF proposal, giving the public additional time to comment. The agency also raised concerns about Coinbase’s surveillance-sharing agreement and whether it can effectively mitigate market manipulation. Ruslan Lienkha, Chief of Markets at YouHodler, noted:
“The SEC’s primary concern with spot crypto ETFs is the risk of market manipulation by major players. This could theoretically happen if ETFs are limited to a small number of funds.”
Technical Overview of Ether (ETH)
ETH has risen from $1,191 to $2,140 since the start of 2023, with its current price at $1,851. Despite recent corrections, bulls remain in control, keeping ETH in a “BUY” zone as long as it stays above key trendlines.
Key Support & Resistance Levels for ETH
On this chart (December 2022 to present), critical support and resistance levels are highlighted to help traders gauge potential price movements. ETH remains bullish, with a potential target of $2,200 if it breaks the $2,100 resistance.
The $1,800 level serves as a crucial support; a drop below this would signal a “SELL,” with potential targets at $1,700 and $1,600. Breaching $1,600 could lead to a decline toward $1,500.
Catalysts for an Ether (ETH) Price Increase
ETH’s price growth in 2023 mirrors Bitcoin’s performance and the broader crypto market. For bullish momentum to continue, a break above $2,200 is critical.
Speculation around the approval of a U.S. Bitcoin ETF adds optimism, with Galaxy Digital’s Mike Novogratz suggesting this milestone may be imminent.
Signals Pointing to Potential ETH Decline
Although ETH is trading above $1,800, a drop below this level could trigger further losses, with $1,600 acting as a strong support level.
While an SEC-approved Bitcoin ETF could boost ETH, regulatory hurdles or negative market news—such as a major crypto firm’s collapse—could trigger a sell-off, leading to a broader market downturn.
Expert Opinions and Market Insights
Mike Novogratz predicts SEC approval for Bitcoin ETFs within four to six months, which could attract institutional investors to the crypto market. Currently, ETH’s bullish trend persists, but its volatility means investors must remain cautious, especially in response to negative developments in the crypto space.
Disclaimer: Cryptocurrencies are highly volatile and may not suit all investors. Avoid speculating with money you cannot afford to lose. This content is for educational purposes only and does not constitute financial or investment advice.
