Ethereum (ETH) Might Be Ready to Retest Key Resistance Levels as Spot ETF (exchange-traded funds) Approaches

Amid the market slowdown, crypto analysts believe Ethereum (ETH) might be ready to retest key resistance levels again

Cryptocurrency investors are keeping a close eye on the latest developments regarding the approval of spot Ethereum exchange-traded funds (ETFs), as the anticipation builds for their launch.

Several analysts have shared their insights on the matter, speculating on its potential impact on ETH’s price and offering varying perspectives on the outlook for the second-largest cryptocurrency.

One crypto investor, known as Daan Crypto Trades, believes that the news about the S-1 form approval will not have a significant effect on Ethereum’s price.

According to the trader, the announcement will likely play out similarly to the 19b-4 approval news in May, which had minimal effect on ETH’s price.

Earlier, rumors about the SEC’s decision on ETH ETFs sparked a rally in the cryptocurrency.

Anticipating the approval, ETH surged over 30% from $3,000 to $3,900. However, after the official announcement, there was no further impact on the token's price.

“I don’t think the SEC approval will be bullish or bearish, it’s 99%+ priced in. The real test will be the actual flows once the ETFs are live,” the analyst noted.

Moreover, the trader anticipates a significant outflow from the Grayscale Ethereum Trust (ETHE) market, although “not as bad as we saw with GBTC.”

Regarding the demand for the Ethereum ETFs, the crypto investor stated that they expect "20% of spot BTC ETF inflows."

“The expectations will be that it’s anywhere from 10-30% of what BTC got in terms of inflows. I think ~20% is a pretty safe estimate. Anything higher would obviously be a nice surprise. ETH doesn’t need as many flows as BTC does to make it move after all. The market cap is 1/3th and there’s a lot of supply locked up in staking/defi products etc. Pretty thin market compared to BTC,” the analysis concluded.

Meanwhile, crypto analyst Jelle highlighted that ETH could be ready to retest key resistance levels again.

According to the post, the second-largest cryptocurrency is “reclaiming the 200-day EMA, with the ETFs approaching fast.”

If ETH manages to hold this level, the cryptocurrency could be eyeing the $4,000 mark.

The analyst anticipates that Ethereum will likely outperform Bitcoin in the upcoming weeks, whereas the flagship cryptocurrency is set to have a “boring next few weeks” moving sideways.

“Not that you guys are ready for it to melt faces, but every cycle people give up on ETH, saying it’s ‘dead tech’ – only to be proven wrong again,” the post added, commenting on those who continue to doubt ETH's potential.

ETH’s price has increased by 5.4% in the last week, and it is currently trading at $3,121 at the time of writing.

Despite registering a 13% decrease in the past month, some market observers believe ETH’s current price is a good inversion.

“Anything close to $3k or below is free 3x in the next 12 months,” said pseudonym crypto analyst Poseidon.