The Ethereum price is steadily approaching the $4,000 mark, with a slight pullback observed on Tuesday after almost touching this significant level on Monday. Despite this minor dip, there is a positive outlook for Ethereum (ETH) as it continues to ride on the tailwinds generated by last week’s SEC approval of Ethereum ETFs.
Currently trading at around $3,850, down approximately 1% on Tuesday, Ethereum remains poised for further upside movement. The recent approval of Ethereum ETFs marks a historic moment for the crypto market, providing investors with a convenient way to gain exposure to ETH and capitalize on potential price appreciation.
Analysts predict that Bitcoin and Ether ETFs could reach a combined market cap of $450 billion in the coming years, with substantial inflows estimated to reach $100 billion within the next 18-24 months. This positive sentiment is further supported by the success of the Bitcoin ETF launched earlier this year, indicating strong demand for similar products related to Ethereum.
Despite Ethereum’s underperformance compared to Bitcoin this bull cycle, primarily due to regulatory uncertainties and concerns surrounding ETF approvals in the US, the recent developments have the potential to trigger a catch-up trade. As the regulatory fog clears, there is significant room for Ethereum to outperform Bitcoin in the near future.
Looking ahead, the next major target for Ethereum is a retest of the 2024 highs near $4,100, followed by a potential rally towards the 2021 peaks near $4,900. With limited technical resistance barriers hindering its upward trajectory, Ethereum could enter a phase of price discovery once it surpasses its previous highs.
If Ethereum replicates its past performance, hitting the 3.618 Fibonacci extension level from its 2018 lows to highs, the price could soar to nearly $15,500. Alternatively, achieving the 2.618 Fibonacci extension from the 2021 record highs would place Ethereum above $11,000, suggesting substantial gains ahead.
While some investors may seek 100x returns in the meme coin market, it’s essential to exercise caution due to the prevalence of scams. Notably, a promising new sausage dog-themed AI meme coin called Wiener AI (WAI) has caught the attention of experts, offering potential for significant returns.
As Ethereum continues its upward trajectory, supported by favorable market conditions and regulatory clarity, investors are advised to closely monitor its price movements for lucrative opportunities in the evolving crypto landscape.
