Ethereum’s price is approaching the $4,000 level, showing potential for further upward movement. This comes as the cryptocurrency benefits from the recent approval of Ethereum ETFs by the SEC. Although it pulled back slightly on Tuesday, trading around $3,850, the overall outlook for Ethereum remains positive. The approval of Ethereum ETFs is expected to attract significant demand, similar to the success seen with Bitcoin ETFs. Analysts predict that the market cap of Bitcoin and Ether ETFs could reach $450 billion in the coming years, with $100 billion flowing into crypto ETFs in the next 18-24 months. Unlike Bitcoin, Ethereum has yet to reach new record highs in this bull cycle, trading 21% below its 2021 peak. This underperformance was mainly due to regulatory uncertainty surrounding Ethereum ETF approvals and concerns about Ethereum being classified as a security. However, with the recent ETF approvals, there is potential for Ethereum to catch up and outperform Bitcoin. As the upside risks for Ethereum increase, it may be a favorable cryptocurrency to invest in. The next key level to watch is a retest of the 2024 highs near $4,100, which will be a significant resistance zone. If Ethereum can break through this level, it could see a sustained rise towards its 2021 highs of nearly $4,900. Technical analysis suggests that once Ethereum surpasses its prior highs, it will enter a price discovery phase, potentially reaching levels of $15,500 or above $11,000. In addition to Ethereum, investors may also consider alternative cryptocurrencies like Wiener AI (WAI), a meme coin with the potential for significant gains. However, it is important to note that crypto investments are high-risk and investors should exercise caution.
