The Ethereum Daily RSI stands at 71, signaling an overbought condition.
The Securities and Exchange Commission (SEC) has postponed decisions on Ethereum ETFs until May 2024 and is seeking public input.
Ethereum, the second-largest cryptocurrency, has faced considerable price volatility and remained in a bearish state for over three days. However, a potential recovery is evident today, with ETH surging by 3% in the last 24 hours, mirroring the global market cap’s 4% increase during the same period. ETH reached a two-week low of $2119 yesterday but is currently trading at $2,236.
Despite a modest 0.71% increase in the past week, significant whale activity was influenced by the prevailing bearish trend. Notably, a popular crypto influencer, Ali, highlighted in a recent tweet that a few ETH whales accumulated 100,000 ETH in the last week, valued at over $230 million.
Analysts foresee a possible dominance of bears in the coming days due to liquidation and technical chart indicators. However, there is optimism that the holiday season could favor the bulls, potentially reshaping this narrative and delivering some Christmas gifts to the bullish market.
In the Ethereum ETF domain, which has the potential to trigger a bull rally, the SEC is extending its decision on various exchange-traded funds until May 2024. Regulatory filings from December 18 indicate this delay, citing the necessity for additional public input on whether these ETFs should be listed.
Notably, the SEC postponed its decision on the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures ETF through these filings. Additionally, the agency deferred its decision on the VanEck spot Ethereum ETF and the spot Ethereum ETF proposed by Cathie Wood’s ARK Invest and 21Shares.
Can Ethereum Bulls Present a Resilient Challenge?
Examining recent movements reveals a potentially delicate bullish path on the daily chart, as the 9-day exponential moving average (EMA) is situated above the current trading price at $2236.91. Nonetheless, the daily relative strength index (RSI) signals an overbought condition, registering at 71.
Should the price surge and surpass the $2244 mark, there is a likelihood of further ascent to challenge the resistance area at $2282. Conversely, if the price yields to bearish momentum and falls below the $2080 support level, there is a potential decline to test the $2043 level.