Rosa Pedraza
Jan 11, 2024 - 06:05

Ethereum Price Outperforms Bitcoin Following Spot Bitcoin ETF Approval

Ethereum hits all-time high, surpassing $25,000 after SEC's approval of Bitcoin ETFs. Analysts predict potential approval of Ethereum spot ETF.

The price of Ethereum (ETH) has surged past $2,500 for the first time since April 2022, reaching a year-to-date high of $2,644. This rapid increase comes in the wake of the United States Securities and Exchange Commission's approval of the first-ever spot Bitcoin ETFs on January 10.

In the last 24 hours, the price of Ether has soared by more than 8.36%, and over the past seven days, it has increased by 15%. Over the last 12 months, Ether has seen a staggering 93% growth. This price surge has outperformed Bitcoin (BTC), which is currently trading at $46,051 and is down 0.1% on the day.

The market is abuzz with news of the SEC's potential approval of 11 out of 14 spot Bitcoin ETF products. Analysts at Bloomberg predict a 70% chance of an Ethereum spot ETF being approved in May. Bloomberg ETF analyst Eric Balchuna has stated that it is unlikely for spot Bitcoin ETFs to be approved without spot Ether ETFs.

The SEC is expected to make approval decisions on several Ethereum spot ETF applications by the end of May, including those from VanEck, Ark 21Shares, and Hashdex.

The last time Ether traded above $2,500 was on May 3, 2022, before dropping to lows below $1,000 on July 18, 2022. Short-position liquidations for Ethereum reached $61.33 million on January 10, and this figure is still increasing.

From a technical standpoint, the price of ETH has broken through the upper boundary of an ascending triangle at $2,384, confirming an upward breakout. The relative strength index (RSI) at 68, close to the overbought region, indicates the dominance of buyers in the market.

The upward movement of the exponential moving averages (EMAs) and the RSI adds further support to Ethereum's positive outlook. The triangle's target at $1,615 is just $1.27% away from the current price. Key levels to watch above that are the $2,800 and $3,000 psychological levels.

However, negative divergence from the RSI with respect to the price action suggests that bears may still attempt to pull the price lower. If bears decide to book profits on the run-up to $2,600, the price may undergo a correction toward the triangle's lower trendline near $2,330 and later the $2,000 psychological level by February.