It seems Ethereum is headed for a breakout month, as it consolidated just under its current resistance range of $3,900 over the weekend.
As Crypto Potato reported, thiough, before the second largest cryptocurrency breaks its current record high of $4,380, it could retest the key support level of $3,600. In doing so, Ethereum might hit $4,000 before the end of October.
However, some indicators have shown a strong pull back on ETH, which may douse out fiery expectations.
Ethereum Price Prediction: Momentary Selloff Expected
A typically decreasing trading volume and the expected volatility arising from the possible commencement of Bitcoin Futures Exchange Traded Funds (ETF) trading could affect Ethereum and other cryptocurrencies. Likewise a declining Relative Strength Index (RSI), particularly on a four-hour timeframe, could also indicate this temporary pullback. In addition, the Moving Average Convergence Divergence (MACD) was shown to be bearish, thus strengthening that ETH bias of needing to retest support to attain further price increases.
Despite these indicators, bullish sentiment for Ethereum remains. However, ETH price may retest the critical support level of $3,600 before it could try to break record-high price levels.
As such, Crypto Potato expects a short correction in the near-term. This means ETH's performance at the start of the week could provide an indication of where it is headed in the coming days.
By Sunday night, Ethereum climbed 0.52 percent to $3,851.09 in a 24-hour period, Coindesk reported.
Present consolidation in the $3,600 to $3,900 is seen to continue before Ethereum makes a momentous run toward a record-breaking month. This retest of support may be needed for bullish traders to gain that level of certainty to propel ETH price to above $4,000.
Ethereum Seen Next to Flaunt ETF Listing After Bitcoin
While ETH enjoys this positive sentiment, experts see Ethereum as the next cryptocurrency to flaunt that ETF listing after Bitcoin. They see that it would only be a matter of time before the Ethereum ETF would hit the market. Crypto investor Lark Davis said in an FX Empire report that he is bullish on the possibility, noting how Ethereum price had been "pumping" on the heels of the Bitcoin ETF.
"The Wolf of Wall Street," a crypto investor and trader, also forecasted in the FX Empire report that the ETH ETF is "coming eventually."
Their predictions come as cryptocurrency investment firms have started their push for an Ethereum ETF. Some of these firms, such as VanEck and ProShares, which is responsible for the Bitcoin Strategy ETF, have submitted applications to regulators for their own Ethereum futures ETF.
But these firms soon withdrew their intent, leaving other Ethereum ETF applications pending with the U.S. Securities and Exchange Commission (SEC) that are based on Ethereum spot market prices. This includes applications from Kryptoin Investment Advisors and Gemini Trust Company, FX Empire added in its report.
This possibility of having an Ethereum ETF is certainly not implausible, given the token's dominance rate of 18.4 percent on CoinMarketCap. Its price soared this year, rising more than 400 percent year-to-date due to its wider use of decentralized finance (DeFi) apps and non-fungible tokens (NFTs) traded on the blockchain.
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