Last week, the likes of Ethereum in the crypto market were rocked when the United States Securities and Exchange Commission (SEC0) revealed that it found Bitcoin Spot ETF filings from giants like BlackRock and Fidelity, among others, inadequate. This news saw the price of cryptocurrencies decline rapidly, but as the new week opens, investors have shaken off the effect of the announcement and bulls have begun to take control.
Ethereum sets sights on the $2,000 level
Ethereum’s recovery following the SEC announcement has been encouraging for investors, leading to a return of positive sentiment around the digital asset. Following this, ETH is now looking towards the $2,000 level even though the bears are currently mounting significant resistance at this point.
The digital asset has already recovered the $1,950 resistance which now serves as support. As a result, this could provide the much-needed bounce point when the cryptocurrency attempts another rally. Such a rally from here could easily see ETH retake $2,000 once again.
Fortunately, Ethereum continues to trade well above its 50-day and 100-day moving averages, both of which have helped the digital asset solidify its short-term bullish momentum. As long as the buyers continue to dominate the market, the break above $2,000 is on track and will likely be achieved before the end of the week.
ETH sitting close to $2,000 | Source: ETHUSD on TradingView.com
Factors that could drive ETH forward
One thing that could serve as a catalyst for a rally towards $2,500 for Ethereum would be approval from the United States Securities and Exchange Commission (SEC). Spot ETF introductions by companies like BlackRock and Fidelity have already given the market a lift. But this is only a fraction of what is possible if one or more of the ETFs are approved.
Such an approval will likely see billions of dollars flowing into the market from institutional investors as they rush to take advantage of and gain exposure to assets like Bitcoin. And as seen before, it won’t be long until an Ethereum Spot ETF follows.
If this happens, then it could not just trigger a rally towards $2,500 for Ethereum. But it could be just the catalyst the market needs to enter another bullish season. Furthermore, an approval coinciding with Bitcoin’s halving next year would see prices rise rapidly.
For now, ETH continues to hold its position, trading at a price of $1,967. This represents an increase of 2.68% in the last day and an increase of 3.88% in the last week.
