Fundamentals of Ether (ETH) are strongly tied to the overall cryptocurrency market, which remains in “a waiting phase “after growing speculations around the first Bitcoin ETF approval in the U.S.
Ether (often mistakenly known as the name of its blockhain, Ethereum) has advanced from $1,622 to $2,029 since June 15, 2023, and the current price stands at $1,851. But where is the price of ETH going next, and what can we expect from the rest of August 2023?
Today, Crypto Lists will discuss Ether price estimates from a technical and fundamental analysis perspective.
Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
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- 1 The SEC has the main word
- 2 Ethereum network is currently facing problems
- 3 Technical analysis for Ether (ETH)
- 4 Important support & resistance levels for Ether (ETH)
- 5 What speaks for the rise in the Ether (ETH) price
- 6 What indicates further downfall for Ether (ETH)
- 7 What do analysts and experts say?
The SEC has the main word
Ether’s price has been locked within a tight trading range spanning from $1,800 to $1,900 since July 21, but the first Bitcoin ETF approval in the U.S. would certainly help the price of this cryptocurrency advance again above the important resistance level that stands at $2,000.
Citing his sources at BlackRock and Invesco, Galaxy Digital CEO Mike Novogratz stated that the United States Securities and Exchange Commission (SEC) will likely give the green light for these Bitcoin ETFs within the next four to six months.
The SEC approval of such ETFs would significantly boost demand for Bitcoin, which will positively influence the price of Bitcoin and many other cryptocurrencies. Positive movements in Bitcoin often lead to increased investor confidence, and when Bitcoin experiences significant price movements, it tends to impact the value of many other cryptocurrencies, including Ether (ETH).
The recent positive developments also include the launch of PayPal’s Ethereum-based stablecoin, and PayPal’s entrance into the world of cryptocurrencies could signify a major step toward mainstream adoption for Ethereum.
However, it is important to say that the Ethereum network is having problems because of high gas fees, which are the costs for transactions, including those done with smart contracts.
For the past two months, the average transaction fee has been more than $4, which limited the demand for its decentralized apps (DApps). In the last 30 days, the main DApps on Ethereum have 25% fewer active users, which certainly reflects that they are not satisfied with how much it costs to transact on the network.
Ethereum network is currently facing problems
There has also been a noticeable decline in the total value locked (TVL) of deposits on the Ethereum network, and together with a lack of volatility, this situation has instilled a sense of uncertainty and skepticism among investors.
While Ether’s bullish prospects are fueled by the potential approval of an ETF and the substantial user base facilitated by PayPal’s stablecoin, the network itself is currently facing problems that could bring the price again below $1,800. Because of this, investors should continue to take a defensive investment approach in the weeks ahead, while “short” traders should keep Bitcoin on their watchlist while placing a short position toward the area.
Investors should also keep in mind that the U.S. Securities and Exchange Commission delayed making a decision on whether to approve ARK Investment Management’s proposed exchange-traded fund that invests directly in Bitcoin. The SEC was previously slated to make a decision by August 13, but the Wall Street regulator has given the public at least three weeks to comment on Cathie Wood-led Ark Invest’s ARK 21Shares Bitcoin ETF (ARKA) application.
Furthermore, the regulator raised concerns about Coinbase’s surveillance-sharing agreement, asking commenters to examine whether Coinbase’s participation in the ETF’s surveillance would, in fact, help to detect, investigate and deter fraud and manipulation in Bitcoin’s price. Ruslan Lienkha, chief of markets at YouHodler said:
“The SEC’s main concern about spot crypto ETFs is about the potential market manipulation by a big whale. Theoretically, it can happen if the SEC approves the ETFs of one or two investment funds. ”
Technical analysis for Ether (ETH)
Ether (ETH) has advanced from $1,191 to $2,140 since the beginning of the 2023 year, and the current price stands at $1,851. Despite the current correction, bulls still control the price movement, and as long the price of ETH is above this trendline, we can’t talk about a trend reversal, and it remains in a “BUY” zone.
Important support & resistance levels for Ether (ETH)
On this chart (the period from December 2022), I marked important support and resistance levels that can help traders to understand where the price could move. According to technical analysis, bulls control the price movement of ETH for now, and if the price advances above $2,100, the next target could be resistance that stands at $2,200.
The current support level is $1,800, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $1,700. If the price drops below $1,600, which represents strong support, the next target could be located around $1,500.
What speaks for the rise in the Ether (ETH) price
The main reason for the ETH price surge in the year 2023 is that it has been following the growth of Bitcoin, just like the rest of the cryptocurrency market. For the bulls to remain the control of price movement, a move above $2,200 would be beneficial.
Growing speculations around the first Bitcoin ETF approval in the U.S. is certainly positive news for Ether, and according to Galaxy Digital CEO Mike Novogratz, the approval may not be far off.
What indicates further downfall for Ether (ETH)
The price of Ether is currently trading above $1,800, but a break below this level would indicate that ETH could probably test the strong support level, which stands at $1,600.
The SEC approval for the first Bitcoin ETF in the U.S. would certainly positively influence the price of Ether, but investors should also keep in mind that regulatory concerns surrounding Bitcoin and the cryptocurrency market can also have a spillover effect, dampening investor sentiment and lead to a broader market correction.
The highly volatile nature of the cryptocurrencies may scare investors again to sell ETH if some negative news happens in the cryptocurrency market – like BlackRock didn’t get the SEC approval or a prominent crypto firm going bankrupt.
What do analysts and experts say?
Mike Novogratz stated that the United States Securities and Exchange Commission (SEC) will likely give the green light for the first Bitcoin ETFs within the next four to six months.
There are expectations that more institutional investors could invest in cryptocurrencies if the SEC gives the green light for the first Bitcoin ETF. For now, bulls control the price movement of Ether, but the highly volatile nature of the cryptocurrencies may scare investors again to sell ETH if some negative news happens in the cryptocurrency market.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.