The SEC has delayed its decision on BlackRock and Fidelity’s spot Ethereum ETF. Ethereum bulls, however, are shifting focus to the upcoming Dencun upgrade, while a crucial price breakout hints at a potential rally to $4,200.
Ethereum, the world’s second-largest cryptocurrency, is on a massive bull run, with its price soaring above $3,700. At the moment, ETH is up by 7%, trading at $3,713, and boasts a market cap of $446 billion.
SEC Delays Decision on Ethereum ETF Proposals
On Monday, March 4, the U.S. Securities and Exchange Commission (SEC) announced a second delay in its decision timeline for BlackRock’s proposal for a spot Ethereum ETF, known as the iShares Ethereum Trust. This comes after the SEC previously postponed its decision on the matter.
The SEC has also initiated a request for public feedback specifically regarding concerns related to Ethereum’s proof of stake mechanism and its susceptibility to fraud and manipulation. Similarly, the SEC has deferred its decision on Fidelity’s spot Ethereum ETF, seeking public comments on similar grounds.
The SEC has set a deadline for the public to submit feedback on both proposals within the next 21 days, with rebuttals expected within 35 days thereafter. May 23 marks the final deadline for VanEck’s spot Ethereum ETF application, which is expected to provide greater clarity on the SEC’s decision-making process regarding Ethereum ETFs.
Mixed Views on Approval Prospects: Crypto experts are divided on the potential approval of a spot Ethereum ETF. Some optimists suggest that SEC approval could come as early as May, drawing parallels to recent Bitcoin ETF approvals. However, skeptics remain cautious, expressing uncertainty about the likelihood of spot Ethereum ETF approvals.
Ethereum’s Price Movement Before Dencun Upgrade
With Ethereum’s price action, it’s evident that investors are currently focusing beyond the Ethereum ETF approval, placing emphasis on the upcoming Ethereum Dencun upgrade expected in a week or two.
Ethereum has surged above $3,650, surpassing the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD, a bullish trend line is forming, with support emerging around $3,600. This aligns closely with the 50% Fibonacci retracement level of the recent upward movement from the $3,465 swing low to the $3,715 high.
Immediate resistance is expected near $3,720, with the first significant hurdle around $3,780. Beyond that, a major resistance zone lies near $3,850, signaling potential bullish momentum if breached. Further upside could see Ethereum targeting the $3,920 level.
Courtesy: TradingView
If Ethereum breaks above the $3,920 resistance level, it could surge towards $4,000, with further momentum possibly testing the $4,200 mark.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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