Ethereum price increased 1.6% in the last week, including a 3.4% increase in the last 24 hours. This renewed interest in the asset came about after the U.S. Securities and Exchange Commission (SEC) moved to drop its investigation into the asset. Ethereum price hovered around $3,562 during European business hours as Bitcoin showed some signs of weakness, closing below a key support level.

Bullish Momentum Hints at a 19% Ethereum Price Breakout

The price of Ethereum had been trending within a falling channel until June 14, when it broke out. Four days later, the price retested the upper trendline of the channel and bounced off it. Additionally, Ethereum has found support around the $3,400 level, bouncing twice to form a double bottom. This pattern suggests a potential rally back to $3,974.

The Ethereum price action is trending at the 50-day and 200-day simple moving averages (SMA) coming up from below them. A break above these key indicators may signal a bullish rally for the asset’s price. The relative strength index (RSI 14) is at the 55 level, indicating ETH price has some room to move to the upside before it hits the overbought (OB) zone.

Meanwhile, Bitcoin broke and closed below a crucial support level on the daily timeframe. $66,000 was a major support area for the asset, as it had been tested three times before and held ground. Bitcoin price action is now trending below the 50-day SMA but above the 200-day SMA. The next level of major support lies around $56,500, which coincides with the latter indicator. 

Ethereum Price Outlook: Is ETH ETF Closer Than We Thought?

The Ethereum ecosystem has recently been rattled by developments regarding potential ETH ETF approval. Previously, the 19-4b forms that were approved were met with mixed feelings from the community due to their ability to be contested. 

Shortly after, Blackrock submitted their S-1 forms, and now, the Ethereum ETF issuers are working to address ‘ reasonable’ comments from the SEC by Friday, according to Eric Balchunas, a senior ETF analyst at Bloomberg.

Balchunas said he was moving his ETH ETF launch date forecast to July 2. Meanwhile, the SEC also dropped their investigations into Ethereum. Consensys announced on Tuesday that the regulatory agency is “closing its investigation” into the digital currency.

This development further fuels the speculation of an impending ETF approval, as the SEC cannot approve the public trading of a company they are in cross-hairs with.

Bottom Line

The chips are falling in place for the Ethereum price to go on a rally. Shortly after SEC Chair Gary Gensler hints at a possible ETH ETF approval, the regulatory agency drops all investigations into the asset. Ethereum might have an eventful summer beginning in July.

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