Ethereum Price Outperforms BTC after spot Bitcoin ETF approval
The ETH price broke through $25,000 for the first time since April 2022 following the United States Securities and Exchange Commission’s approval of the first-ever spot Bitcoin ETFs on Jan.10.
Ether price climbed rapidly sharply from the opening price of $2,344 on Wednesday, soaring more than 8.36% in the last 24 hours, 15% in the last seven days and 93% over the last 12 months to reach a year-to-date high of $2,644, according to data from CoinMarketCap.
ETH/USD price chart. Source: CoinMarketCap
The second largest cryptocurrency by market capitalization outperformed its leader, Bitcoin (BTC) which is currently trading in the red at $46,051, down 0.1% on the day.
Ethereum’s price performance comes as the market digests news of the SEC’s potential approval of 11 of the 14 spot Bitcoin ETF products. Bloomberg analysts predict a 70% chance of an Ethereum spot ETF being approved in May.
Previously speaking to Cointelegraph, Bloomberg ETF analyst Eric Balchuna said he couldn’t see a scenario where spot Bitcoin ETFs are approved but spot Ether ETFs aren’t.
“The Ether spot is tied to the hip of the Bitcoin spot for sure. It’s gonna go wherever it goes. It’s basically like on a 15-foot rope following it.”
The SEC needs to make approval decisions on multiple Ethereum spot ETF applications by the end of May, including VanEck, Ark 21Shares and Hashdex.
The last time Ether traded above $2,500 was on May 3, 2022, when it reached a high of $2,529 before dropping to lows below $1,000 on July 18, 2022, following the collapse of the Terra ecosystem.
Data from Coinglass shows short-position liquidations for Ethereum reached $61.33 million on Jan. 10. The tally is currently at $57 million for the last 24 hours and is still increasing at the time of writing.
Ethereum liquidations chart Jan. 10. Source: Coinglass
Ethereum price reaches bullish triangle’s target
From a technical standpoint, ETH’s price has broken through the upper boundary of an ascending triangle at $2,384, confirming an upward breakout.
The position of the relative strength index at 68 close to the overbought region is a testament to the buyers’ dominance in the market.
The upward movement of the EMAs and the RSI added credence to Ethereum’s positive outlook. The triangle’s target at $1,615 is just $1.27% away from the current price. Rising above this level would indicate the ability of the buyers to sustain higher levels.
Key levels to watch above that are the $2,800 and the $3,000 psychological levels.
ETH/USD Daily Chart
On the other hand, the negative divergence from the RSI with respect to the price action suggests that the bears have not given up on pulling the price lower.
If bears decide to book profits on the run-up to $2,600, the price may embark on a correction toward the triangle’s lower trendline near $2,330 and later the $2,000 psychological level by February.
