Ethereum Preparing For A Historic Moment: Will Spot ETFs Propel ETH Above $3,700?

Ethereum surprisingly closed lower yesterday, preceding a historic day. As it is, the coin might appear weak. Still, the uptrend remains, and buyers have a chance to not only breach immediate resistance levels but close at 2021 highs in the coming weeks. For what it is, the approval of spot Ethereum ETFs for trading today could set the base for more gains. However, from what happened with spot Bitcoin ETFs, prices might cool off first before rallying.

The coin remains in a bullish formation, but sellers were in control yesterday. At press time, ETH is stable, down roughly 1%, while up 6% in the previous trading week. The contraction yesterday also saw trading volume rise slightly to over $19 billion. Since today will be a huge milestone for ETH, prices will likely be volatile, forcing engagement higher.

In light of investor expectations, traders should closely track the following trending Ethereum news:

• Yesterday, the NYSE cleared the listing of Bitwise and Grayscale Ethereum Trust’s spot Ethereum ETFs. What this means is that trading begins today, allowing investors to gain exposure to ETH. With institutions driving ETH, analysts predict other quality altcoins will receive major tailwinds.
• Ahead of this planned listing and trading, implied volatility in top crypto exchanges, mostly Deribit, has been rising steadily. In the past week, it rose from 56% to 70%, meaning traders expected high volatility post-launch.

Ethereum Price Analysis

At spot rates, ETH/USD is down, but the uptrend remains.

Depending on sentiment, the cool-off could be reversed today as buyers flow back, loading the dips and aligning with the primary trend set in motion last week.

Notice that Ethereum remains above the immediate support at around $3,300.

Besides considering the dip, conservative, risk-on traders can wait for a clean break above last week’s highs or $3,700 before aligning with the emerging trend.

In the event, the first target would be $3,900 and 2024 highs of $4,100.

Any close below $3,300 will cancel this bullish outlook, at least in the short term.