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Boost for crypto on improved outlook around Ethereum ETFs. Bitcoin is back above $70k.

Techhnical picture:
BTC/USD Daily

XBTUSD-BGN
XBTUSD-BGN

The price continues to move with the flag formation and is currently testing its resistance in the area around $70,000-$71,000. On a break above $72,000 and triggering the flag formation, the upside momentum will accelerate and the price will most likely head for a test of the ATH levels around the $74,000 area.
-Sequential prints a 9 and signals an upcoming correction
-DeMarker continues to enter overbought territory
-Price action from yesterday shows a strong bullish bar

Alternatively:
On a rejection of the pattern resistance, the price will most likely head for a test of the 65 SMA in the area around $65,500.

Fundamentaly:
Cryptocurrency prices rose on signs of progress toward US approval of exchange-traded funds (ETFs) investing directly in the second-largest token Ethereum, a reversal from a more dovish outlook just a week ago. Speculation about Ether spot ETFs driving the market is reminiscent of the investor enthusiasm that greeted the corresponding U.S. Bitcoin funds, whose listing in January drove the biggest digital asset to a record high. Ether rose nearly 14% in US trading — its biggest gain since November 2022 — before adding to gains in Asian hours to hit $3,666. Bitcoin rose to $72,000, near its mid-March peak of nearly $74,000.

The US Securities and Exchange Commission (SEC) has reached out to at least one exchange and at least one potential Ether spot ETF issuer to update related 19b-4 filings, according to people familiar with the matter. This is a sign that the chances of SEC approval may be increasing. The denouement is an unexpected development, but does not guarantee approval. The 19b-4 files are only part of the required documents. Issuers must also obtain regulatory approval of S-1 registration statements before launching ETFs. A decision on at least one Ether spot ETF application is expected by May 23. An SEC spokesman said the agency does not comment on individual filings.

Social media is abuzz with speculation that “the SEC may be more receptive to potential approval and traders are now rushing to take positions as many had completely written off even the remotest possibility of approval,” said Chris Newhouse, an analyst at Cumberland Labs. Ether is the native token of the Ethereum blockchain network, which is one of the most important trading networks in the crypto world. The network is popular for decentralized financial services, where investors trade, borrow and lend through automated software protocols rather than through traditional intermediaries.

On Monday, Bloomberg Intelligence ETF analyst Eric Balchunas said he and colleague James Seyfarth had increased the estimated probability of approval of the Ether spot ETF to 75% from 25%. Some fund companies are expecting rejection because their private talks with the SEC have not been as intense compared to preparations for the launch of a spot bitcoin ETF, according to data. The skeptical SEC, which had otherwise cracked down on cryptocurrencies, reluctantly agreed to a U.S. Bitcoin spot ETF earlier this year after a court ruling in 2023. Products from companies such as BlackRock Inc. and Fidelity Investments raised $58 billion in assets, one of the most successful launches for this category of funds.

BlackRock and Fidelity are also looking to launch Ether funds. The digital asset industry sees US ETFs as a way to expand the cryptocurrency investor base. Retail investors, hedge funds, pension funds and banks have poured capital into Bitcoin funds — Millennium Management, Stephen Cohen’s Point72 Asset Management and Elliott Investment Management are among the notable buyers.


 Junior Dealer Yulian Bonzov

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