●Ethereum price is up 8%, outperforming Bitcoin as excitement over expectations of spot BTC ETF approvals increase.
●ETH could extend the climb 15% to $2,800 once a Bitcoin ETF is approved.
●The bullish thesis will be invalidated if Ether market value breaks and closes below $2,135 support.
Ethereum (ETH) price remains a top performer among the crypto top 10, spiraling within a bullish technical formation that commits Ether to more gains. It comes as the countdown to possible spot Bitcoin exchange-traded fund (ETFs) approvals climaxes since ETH community members anticipate the hype shifting toward a similar spot ETF for Ethereum.
ETH could come next if a spot Bitcoin ETF is approved
Ethereum (ETH) price did not flinch even as Bitcoin crashed in the aftermath of the fake spot BTC ETF approval news. It comes amid expectation that after the US Securities & Exchange Commission (SEC) greenlights the BTC product, Ether could be next.
Multiple participants in the crypto sector, including Valkyrie Fund CIO Steven McClurg, say an ETH ETF launch would be unsurprising.
It comes as multiple institutions have already submitted applications for spot ETH ETFs, including VanEck, Ark21Shares, Hashdex, Grayscale and Invesco.
ETH ETF applications
Amid this anticipation, Ethereum is going through a supply shock with funds rushing into the ETH market as investors front run a possible spot ETH ETF.
Ethereum could rally 15%
Ethereum price is moving within an ascending parallel channel, a bullish technical formation that could see ETH reclaim the $2,457 range high. Enhanced buyer momentum might see the largest altcoin by market capitalization metrics test the $2,800 level, a move that would denote a 15% climb above current levels. In highly bullish cases, Ethereum price could extend the gains to the $30,000 psychological level, standing 25% above current levels.
The rising Relative Strength Index (RSI) accentuates the bullish thesis by showing that buying strength is increasing. Both the Awesome Oscillator (AO) and the Moving Average Convergence Divergence (MACD) indicators are also in positive territory. This would demonstrate that bulls are leading the ETH market. More closely, the MACD has crossed above the signal line (orange band), which is a bullish crossover.
ETH/USDT 1-day chart, Source: TradingView.
On-chain metrics support bullish outlook for Ethereum price
Santiment’s daily active addresses metric supports the bullish outlook for the Ethereum price, showing a progressive surge in crowd interaction with ETH as more unique addresses are created. In mid-December, there were 387,000 daily active addresses, while the number currently stands at 413,000. This represents a 6.7% increase in just under a month.
Also, whale transactions for transfers of $100,000 and above have been spiking, accentuated by surging volumes to show increasing investor interest.
ETH Daily active addresses, volume, whale transaction count, Source: Santiment.
On the other hand, with the potential for early profit-taking, Ethereum price could correct if the bears have their way. The ensuing seller momentum could see ETH market value dwindle, losing the support at $2,388. In a dire case, an extended fall could send the proof-of-stake (PoS) token to the depths of $2,135, below which the prevailing bullish outlook would be invalidated if a lower low occurred.
