After a phenomenal rally this week, Bitcoin and Ethereum prices are experiencing a slight pullback. The price action of the most valuable crypto assets is driven by the speculations around the imminent approval of spot ETH ETFs as their deadline approach.
On the daily timeframe, the ETH price is down 2.62% on Wednesday. This correction could be attributed to profit-taking after a 25% rally this week. Nevertheless, the smart contract cryptocurrency remains 20.38% up on the weekly timeframe with a potential for a retest of the $4,000 level in the coming days.
The US Securities and Exchange Commission is set to issue a verdict on the multiple pending spot ETF applications this week. In a dramatic turn of events, Bloomberg analysts have increased approval odds by 75%. This was done in light of the recent correspondence between the SEC and the ETF applicants, causing the Ethereum price to skyrocket.
According to the latest reports, the SEC has conveyed to the relevant exchange that it is leaning toward approving the spot Ethereum ETF applications. The deadline for VanEck’s ETF is May 23, and the deadline for 21 shares ETF falls on the very next day.
A look at the following ETH/USD chart reveals a recent breakout from the descending triangle pattern. Analysts are considering this breakout to be a trend reversal signal which comes after a 31% decline from the yearly highs. Consequently, Ethereum price prediction has flipped bullish once again.
The breakout target lies within the $4,011-$4,130 supply zone, which is shown in the chart below. This supply zone is acting as major resistance and caused a rejection when the price retested it in March. If bulls absorb the selling pressure in this zone, an extended rally toward $5,000 might follow.
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