Ethereum Breaks Out, ETH Bulls Readying For $1,820?

Ethereum Breaks Out, ETH Bulls Readying For $1,820?
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The Ethereum (ETH) price is firm, adding 5% in the last trading day and breaking above a critical resistance level. Since the August 29 bar had a wide-ranging bar and trading volumes were also high, there appears to be a shift of sentiment, which could also support prices in the days ahead. 

The major court ruling on the Grayscale versus the United States Securities and Exchange Commission (SEC) could set the base for official Bitcoin spot exchange-traded funds (ETFs) in the days ahead.

At the same time, with several entities applying for Ethereum futures ETFs, this could set the ball rolling for the often strict regulator to give a nod for approved trading of Ethereum derivatives.

Will the Grayscale versus SEC court ruling influence ETH’s course?

A court in the United States wasn’t convinced by the reasons given by the SEC as to why a Bitcoin spot ETF wasn’t live yet. 

For this reason, Grayscale’s mission of converting their GBTC to a spot Bitcoin ETF is on the way. This conversion is a massive endorsement for crypto, and top-tier coins like Ethereum could be major beneficiaries. 

In the last bull cycles, a few companies found exposure in Ethereum, diversifying away from Bitcoin. 

Once Bitcoin ETFs hit the markets in the United States, the next possible focus is for firms to start applying for the same with Ethereum ETFs. Going by the current pace of Ethereum Futures ETFs, the regulator will likely approve the first of this derivative in the next few months.

Ethereum Price Analysis

Ethereum price on August 30

Ethereum found support from around the $1,600 to $1,625 zone, exploding higher and breaking above the immediate resistance level (now support) at $1,700.

As it is, the path of least resistance is northwards. This is because the bull bar of August 29 has expanding trading volumes and comprehensively broke above the $1,700 resistance level. Even though losses of August 17 have not been fully reversed, the spike in volumes is a net positive and may mean mid-August losses were climactic. 

At this pace, aggressive traders can look to load the dips, targeting August 17 highs of $1,820 in the medium term. Meanwhile, conservative traders can enter the fray once there is a complete reversal of August 17 losses, with targets set at $1,870 and later $2,000. Any unexpected dip below $1,625 cancels this bullish preview.

Technical charts courtesy of Trading View.

Disclaimer: The opinions expressed do not constitute investment advice. If you wish to make a purchase or investment we recommend that you always conduct your research.

If you found this article interesting, here you can find more Ethereum news.


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