Ethereum ETF in Sight? What Do the Market Trends Indicate?

Journalist

• An ETH could be approved this week.
• News of the approval is based on the confidence of observers in the space.

Recent predictions of an impending approval of an Ethereum ETF [ETH] have created excitement in the market, leading to one of Ethereum’s most impressive price movements in recent weeks.

It is interesting to note that despite the dynamic nature of Ethereum’s social media activity, it has remained relatively quiet.

Excitement in the Market

Nate Geraci’s recent speculations of an Ethereum ETF being approved this week, while not based on specific regulatory guidance, underscored an optimistic forecast fueled by a broader movement in the industry.

He seemed confident following recent actions by several ETF issuers such as VanEck and 21Shares, who amended their registrations within the last week in hopes that the SEC will approve the listing of spot Ether ETFs.

The issuers follow a growing trend of institutions looking to capitalize on the regulatory momentum created by Bitcoin’s approval. [BTC] ETF.

Geraci’s belief was part of a broader sentiment within the crypto community that the regulatory climate was ready for the approval of another ETF.

Steady Social Dominance

Social metrics for Ethereum have remained relatively consistent despite the anticipation of a possible Ethereum ETF approval.

According to AskFX, social dominance analysis via Santiment shows that it peaked at around 11% over the past two weeks. Ethereum accounted for 11% of all crypto-related discussions during this period.

Social dominance has declined slightly to 9.4% at the time of writing, compared to 10% the day before.

Social volume, which is an indicator of the number of posts or mentions of Ethereum on various social platforms, has not shown any significant spikes.

Social volume at press time was around 380.

Impact on Prices

AskFX examined Ethereum’s daily chart and found that the price is gaining momentum.

After a sharp downturn, ETH is now recovering with a clear uptrend. According to recent data, it had risen by around $3.7 and was now trading at around $3360.

This was the highest price in almost two weeks and was close to its short-term moving average (yellow lines).

Over the past two weeks, the yellow line acted as a resistance level at $3,400-$3,500.

Read Ethereum’s [ETH] price prediction for 2024-25

A possible approval of an Ethereum ETF could be a key factor for ETH to break through these resistance levels.

An ETF approval would boost investor confidence, increase institutional participation, and potentially push the price back to its all-time high (ATH).