Ethereum Holds Strong Above $3,100 Amid ETF Decision Anticipation

• Ethereum remains above $3,100, with potential for a breakout towards $4,000.
• The SEC’s imminent decision on spot Ethereum ETFs could significantly impact the market outlook.
• The approval of the ETFs could drive Ethereum to new highs, while rejection may lead to a drop below $3,000.

Ethereum remains above $3,100, with bulls solidifying their stance. Following a brief rally last week, buoyed by improving macroeconomic factors, Bitcoin and Ethereum saw modest gains, with Bitcoin exceeding $67,000 and Ethereum surpassing $3,100.

Analysts are closely watching Ethereum’s potential breakout towards $4,000. The SEC’s decision on spot Ethereum ETFs is imminent, starting with VanEck’s application on May 23, followed by ARK Invest and 21Shares on May 24. Major firms like BlackRock and Hashdex are also poised to launch spot Ethereum ETFs.

Despite the anticipation, there is a prevailing sentiment that the SEC might reject these applications. Some ETF applicants have observed less engagement from the SEC compared to the period before Bitcoin ETFs were approved in January.

On the other hand, approval of the ETFs could significantly enhance Ethereum’s market outlook, potentially driving prices to new record highs and paving the way for future digital asset ETFs. Recent Ethereum price analysis suggests bullish momentum, indicated by a falling wedge pattern on the daily chart. A breakout above the 50-day EMA could push prices toward $4,000.

The MACD has generated a buy signal, prompting traders to place buy orders above the upper trendline, with targets set at $3,400 and $3,800 for the week. For this bullish trend to continue, Ethereum needs to stay above the 20-day EMA. If it fails to maintain this support, prices could drop below $3,000, leading traders to consider $2,800 and $2,600 as potential buy entry points.

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