Ethereum Looks at a Bullish $4000 Price Point Amid Regulatory Obstacles

By: Eliza Bennet

Despite recent regulatory scrutiny, Ethereum (ETH) seems bullish as it guides its path towards the $4,000 price mark. With the US Securities and Exchange Commission (SEC) engaging with issuers alongside the application process for a spot Bitcoin ETF, Ethereum ETF approval looks plausible, suggests Craig Salm, the Chief Legal Officer at Grayscale.

During the approval of spot Bitcoin ETFs, regulators addressed crucial issues like creation and redemption processes, cash versus in-kind transactions, and custody concerns, applications of which align directly to ETH due to its likeness to BTC. [Reference](https://cryptoslate.com/sec-approves-spot-bitcoin-etfs-after-11-years-of-rejections/)

However, amid the vibrant pursuit, skepticism regarding the approval of Ethereum ETFs increases as the financial regulator postpones the approval process for a few issuers. This, along with minimal regulatory activity around the applications, has dimmed optimism related to the approval. [Reference](https://cryptoslate.com/sec-delays-lower-expectations-of-ethereum-etf-approval-by-may-despite-staking-amendments/)

In lieu of regulatory uncertainties, ETH has witnessed significant growth in its network, suggesting a potential price breakout. There is a key bullish trend line forming with support at $3,560 on the hourly chart of ETH/USD. [Reference](https://www.tradingview.com/symbols/ETHUSD/) The trajectory could change should the price settle above the $3,680 resistance zone. The increasing activity and anticipation for price appreciation emphasize Ethereum's resilience, pointing towards the potential for growth even during regulatory uncertainties.