Ethereum Price Moves Toward $4K on Imminent ETF Launch Hopes

Ethereum’s native token, Ether (ETH), is approaching the $4,000 mark in July, fueled by optimism surrounding the potential launch of its spot exchange-traded funds (ETF) later this week.

ETH is Breaking Above Critical Resistance Level

As of July 15, Ether’s price surged by 3.91%, reaching approximately $3,375. This marks a significant 19.30% increase from its recent low of around $2,825, recorded just a week earlier.

In doing so, ETH’s price marginally rose above its 50-day exponential moving average (50-day EMA; the red wave) at around $3,333. That, combined with a neutral relative strength index (RSI) at around 52.25, indicates that the Ethereum token has more room to grow in July, at least until the RSI reading reaches its overbought threshold of 70.

Further recovery in the Ether market could have the price test the upper trendline of its prevailing sideways consolidation channel, akin to its price rebounds in February and May earlier this year. This key level, around $3,925, might encourage traders to push the ETH price toward the psychological resistance of $4,000 in July.

Conversely, a pullback from the 50-day EMA resistance could result in a drop toward the channel’s lower trendline at around $2,840.

Institutions Pour $82.4M into Ethereum Funds Ahead of Potential ETFs Launch

Furthering the technical bullish outlook for Ethereum is an increasing institutional interest in the cryptocurrency’s investment funds ahead of this week’s potential ETF launch.

According to a weekly report by CoinShares, the Ethereum-based investment funds have collectively attracted $72.1 million to their reserves in the week ending July 13, bringing their month-to-date inflows to $82.4 million.

Last week, several issuers, including VanEck and 21Shares, filed amended registrations, aiming to secure the SEC’s final approval to list spot Ether ETFs. Eight spot issuers are currently awaiting regulatory approval.

Nate Geraci, ETF analyst and president of The ETF Store, predicted on X that all eight spot ETH ETFs would be launched by the end of this week, saying:

“Welcome to spot ETH ETF approval week. I don’t have any specific information, but I can’t think of a good reason for any further delay at this point.”

Furthermore, Ethereum funds are witnessing inflows due to investors’ growing risk appetite following Federal Reserve Chairman Jerome Powell’s dovish outlook. In a committee hearing last week, he expressed caution about maintaining high interest rates, stating that “reducing policy restraint too late or too little could significantly weaken economic activity and employment.”

As a result, target rate probabilities for a 25 basis point rate cut in September have increased to 88.1% on July 15 from 62% a month ago. Lower interest rates are typically bullish for cryptocurrencies like Ether, which explains the core reason why institutional investors are returning to crypto funds.