Spot ETH ETF on the Horizon: Anticipating Ethereum Price Surge

Ethereum is showing signs of strength as it moves above the consolidated range, gearing up for a bullish surge following the launch of a spot ETF. The token has managed to trap the bears at lower levels previously, leading to speculations about potential bear traps emerging.

The market sentiment turned optimistic after Bitcoin surpassed $60,000, fueling hopes for bullish momentum. This positive outlook has propelled the Ethereum price back above $3,300. The resurgence in bullish signals has reignited discussions about the likelihood of reaching $3,500, with technical indicators signaling clear buying opportunities.

The imminent launch of a spot ETH ETF is creating anticipation within the market. Analysts expect the ETF debut to mirror or even surpass the price movements witnessed post-approval. Previous discussions highlighted the underestimated impact of the ETF on ETH prices. According to data from Santiment, the ETH 2.0 Beacon Deposit Contract, utilized for deposits, currently holds 47.36 million ETH.

The record levels of ETH held in the deposit contract suggest a substantial portion of circulating ETH is staked, with over 33.9% of the total supply locked up. Conversely, the supply in the deposit contract, excluding the Beacon deposits, has decreased by more than 5.3% over the past two years. This trend indicates a growing amount of ETH being locked into the ETH 2.0 deposit contract, as wallets holding 10,000 ETH or less have reduced by over 17%. With a significant portion of Ethereum held in Beacon wallets, a slight uptick in demand could propel ETH prices towards the next target of $3,500.

Recent trading patterns reflect the price action following the approval of the spot ETF, showcasing a bullish candle breakout from a descending parallel channel. Despite facing resistance around $3,900, the price has retraced within a descending parallel channel. With the ETF launch imminent, another bullish candle could be on the horizon.

The price is currently striving to surpass key resistance levels between $3,282 and $3,323. Once achieved, Ethereum’s price rally may target $3,500 or even $3,700 in case of strong bullish momentum. The market is closely watching for further developments as Ethereum navigates its path towards potential price milestones.