ETH/BTC Price Analysis: Ethereum Price Poised to Hit $4,200

Ethereum price jumped 8% over the weekend as the asset experienced renewed investor interest. The price dipped to $3,362 before beginning an uptrend that lasted throughout the weekend. By Monday’s European business hours, ETH hovered around $3,586, marking a 1.2% increase in 24 hours but a 2.7% drop over the past 7 days. Meanwhile, Bitcoin’s price remained in a consolidation zone, with an anticipated directional move expected soon.

Ethereum Price Analysis: Bulls Take Advantage of Major Support 

ETH price witnessed a 8-day continuous fall last week, going from $3,878 to $3,362. In the drop, the asset broke a critical support level that was responsible for holding it above $3,650. Bears took advantage of ensuing panic to drive prices even lower. 

The bulls eventually utilized another stronger support structure between $3,400 and $3,250 to bounce Ethereum price action back into an uptrend. The asset may have entered another consolidation zone between $3,600 and $3,300, but it is too early to tell. The main challenge for the bulls lies at breaking above the $3,600 support-turned-resistance. If they succeed, ETH price may rise to $4,216, with some resistance around $3,800 and $3,900.

Meanwhile, Bitcoin is at a crucial place on its daily chart, trending around a key support level ($65,000). On Friday, bears managed to push the price below the support level, but they were met with hostile rejection from the bulls. A clean break below this level would result in further downside to $57,000. On the flip side, this support level is strong and has been tested three times before. A bounce from here may result in a BTC price surge to $72,500. A break above this might easily launch Bitcoin to new all-time high prices.

Spot ETF S-1’s Will Likely be Approved by the End of Summer

Gary Gensler, Chair of the Securities and Exchanges Commission (S.E.C.), hinted at a likely Ethereum ETF S-1 approval by the end of summer. This news may have likely caused the reversal in Ethereum price over the weekend.

Meanwhile, Ethereum blob usage has been trending up for about 5 weeks now as rollups continue to see more and more activity. Blobs improve the efficiency of Layer 2 (L2) transactions, reducing congestion and potentially cutting down on gas fees.

Bottom Line

Spot ETFs for crypto assets have historically been great price boosters. As summer approaches an end, the crypto markets watch closely for Ethereum Spot ETF approval. By releasing this information, Ethereum investors are now in a buy-the-rumor phase that may last until the eventual approval of the ETF.

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