Phemex Analysis #8: Will Ethereum ETF spark a Bullish Run?The news of the Ethereum Spot ETF launching next Tuesday has been circulating widely online in recent days. Will the launch trigger a bullish run for PHEMEX:ETHUSDT.P ?
Here are some key points to consider regarding the ETH price.
Impressive Rise: ETH rose from $1565 (October 20, 2023) to $4098 (March 12, 2024), a significant 161.7% increase in just five months.
Recent Price Action: The 1D chart shows ETH forming a potential Head & Shoulders pattern; 1st Top is at 12th March 2024 and 2nd Top is at 27th May 2024. However, a solid base (support level) has also formed around $2800.
Current Price Action: ETH is currently facing resistance at $3535 and consolidating between $3517 and $3230. This retracement from the resistance level is normal and could be a sign of preparation for a future bullish run.
There are two main possibilities following the launch of the ETH ETF.
Scenario 1: Bullish Run
If the ETF news ignites a bullish run, we can expect a high-volume breakout above the $3535 resistance level. This could be an opportunity to chase the highs, but remember to set a stop loss in case this become a false breakout. Volume is Key here.
Scenario 2: Continued Consolidation
The price might continue to consolidate around $3517-$3230 or even drop to create a higher low above $2800. This could be a good opportunity to buy low.
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