The Ethereum price is approaching a key resistance level as investors reflect on the new Bitcoin ETF, BITO. The ETH coin is trading at $3,836, which is slightly below the key resistance level at $4,040, which was the highest on September. It has a total market capitalization of more than $455 billion.
Ethereum ETF next?
ProShares launched the first-ever Bitcoin futures ETF on Tuesday. The fund was welcomed well as its price rose by more than $2.
Now, the focus is shifting to the next ETF that will be accepted by the Securities and Exchange Commission (SEC). The most likely situation is where the SEC will accept more Bitcoin futures ETF. Also, some analysts believe that the regulator will accept a fund focused on spot Bitcoin.
At the same time, there are rumours that Ethereum could see an ETf launched soon. Already, companies like Grayscale have announced plans to launch an ETF based on Ethereum. This will be highly likely because the SEC has already showed its willingness to accept ETFs based on futures. Already, there is an Ethereum futures contract run by the CME.
Also, Ethereum is a good candidate for a fund because of its size. The coin has a market cap of more than $455 billion, making it one of the biggest assets in the world. Also, it has become a backbone of the decentralized universe since it is used to build about 80% of all decentralized applications.
Ethereum price prediction
The daily chart shows that the ETH price has made a strong recovery in the past few weeks. The coin has managed to move above the 25-day and 50-day moving averages. It is also slightly below the important resistance at $4,040, the highest level in September. Also, it is slightly below the key resistance at the all-time high of $4,400.
Therefore, the Ethereum price will likely break out higher as investors target the all-time high. Any such breakout will see investors start targeting the next key resistance at $5,000. The bullish view will be invalidated if the price drops below $3,000. This view is consistent with my previous ETH price forecast.
