ETH Price Lifts Hype Around Bitcoin ETF, Here's the Technical Analysis

come back with me this afternoon I want to share information about The crypto market witnessed a surprising surge in the price of Ethereum (ETH) after the long-awaited approval of a spot Bitcoin ETF in the US. The approval of 11 spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC) on January 10 created a domino effect in the crypto market, with Ethereum experiencing a significant increase in value. This surge sparked speculation among investors regarding the potential approval of a spot Ether ETF.

Crypto Globe reports that Ethereum prices have surged more than 10 percent shortly after the SEC's approval of a spot Bitcoin ETF, reaching around US$2,600. Despite a minor correction from its peak of around US$2,700 per ETH, the spike suggests that investors are optimistic about the possibility of spot Ether ETF approval. This development attracted attention from both institutional and retail investors.

Proponents of spot crypto ETFs argue that these funds can appeal to a wider range of investors by providing exposure to the underlying assets without the need to use centralized exchanges or manage the private keys associated with crypto wallets

The surge in Ethereum prices shows increasing investor confidence in the launch of a spot ETF for this crypto. Ethereum's increase in value coincides with a key period in which Vitalik Buterin, Ethereum co-Founder, defended the decision to increase the network's gas limit. Gas limit determines the maximum amount of gas available for transactions or smart contracts within each block. Buterin stressed in a Q&A session on Reddit that gas limits have remained stable for nearly three years, setting a record for Ethereum. He proposed a reasonable increase from 30 million to 40 million, citing the need for network stability and performance

Currently, Ethereum is trading above US$2,550 and the 100 hourly SMA indicator. Analysts predict potential resistance around the US$2,640 level, with the next significant barrier at US$2,680. NewsBTC reports that a break above US$2,680 could push ETH towards US$2,720, signaling a move into the bullish zone. Further resistance levels were identified at US$2,780 and US$2,880, with the possibility of Ethereum reaching the US$3,000 zone in case of a sustained rise.

Despite the bullish outlook, failure to clear the US$2,680 resistance could trigger a downward correction. Initial support is expected around the US$2,590 level and the trend line. The US$2,465 zone, along with the 50 percent Fib retracement level, serves as key support.

A break below US$2,465 could result in further declines, testing support at US$2,350 and possibly extending to the US$2,220 level. lets watch.