ETH Breaks Out
Yesterday’s historic announcement that the SEC has approved 11 spot-Bitcoin ETFs for public trading has fuelled a wave of excitement across crypto markets. While Bitcoin is seeing a relatively muted response so far, ETH has been the standout winner. The market soared yesterday on the news trading back up to its highest levels since early 2022 as speculation mounts that spot-ETH ETFs will be the next focus point.
ETH ETFs Coming Soon?
News that several funds linked with Hong Kong and China are already exploring options for ETH ETFs is helping drive sentiment higher here. News of the SEC approval yesterday saw ETF futures rallying by almost 9%, now up around 30% on the year already. ETH bulls have long been calling for a fresh bull market since the systems merge last year. While prices had been grinding higher over much of last year, current market developments offer the opportunity for a significant step higher.
Looking ahead, the crypto market is set for further advance with the upcoming Bitcoin halving event in April expected to drive a fresh rally. Ahead of that, focus will be on the uptake we see for the current Bitcoin ETFs. If demand is strong and the ETFs trade well, this should help drive crypto prices higher, particularly ETH which should continue to benefit from its own ETF expectations.
The rally in ETH has seen the market breaking out above the 2422 level. Price is now testing above the 2633 level. If bulls can hold above this level, the focus will be on a continuation higher towards the 2949 level next. To the downside, should we fail here, support at 2422 remains the key focus point for bulls to defend.