An investigation of Ethereum's price revealed a recent relief rally that occurred during the second week of July. Due to the bullish reversal, the asset recorded a weekly gain of 13.2%, taking it from the monthly support level of $2825 to $3196.

This recovery resulted from the market's excitement about the possibility of spot ETH ETFs being approved in the next week and was aided by the supply of broader market assets. Is the trend of correction now complete?

Ethereum Price Analysis: Will the Approval of the Spot ETH ETF Boost the Price of Ethereum to $4000?

According to the research on the Ethereum price, the mid-term trend reveals that the daily chart is moving horizontally. As a result of the development of a new lower high at $3974 and the recent formation of the same swing low at $2815, it is anticipated that the price of ETH will enter a consolidation trend to recover from the tired bullish momentum.

Over a week, the asset has risen to $3191 after a recent reversal from the $2815 support level, while the market capitalization has increased to $383.5 billion. On the other hand, the falling volume that accompanied the rise indicates that market players are showing less enthusiasm in initiating long positions.

Due to buyers' lack of commitment, the rebound appears unsustainable, and ETH may undergo further adjustment. If the price of the coin returns to the overhead trendline, shown by the blue line that slopes downward, the sellers can re-challenge the $2815 floor to extend the current decline.

The potential breakdown might increase supply pressure, causing the asset to reach $2400.

Nate Geraci, President of the ETF Store, recently tweeted that the SEC's approach to the spot Ethereum ETF S-1 submissions closely resembles its treatment of the 19b-4 filings, which is defined by extensive discretion. Geraci's post confirmed what he had previously stated. Even though there is no valid explanation for any delay, Geraci maintains her optimism regarding the approval, which is expected to be granted the following week.

Therefore, the possibility of approval might increase the buying momentum, which would raise the price prediction objective for ETH above the $4000 barrier, Coingape reported.

Technical Indicator

• EMAs: The 20-day and 50-day Exponential Moving Averages (EMAs) are dynamic resistance levels during a bullish upswing, signaling a solid downward momentum.

• RSI: The Relative Strength Index (RSI) reverted to 45%, indicating a neutral sentiment among market participants.