The first Ethereum spot ETF in the United States is about to be launched, but the price of Ethereum has been performing poorly recently, with a nearly 10% decline in the past month. However, Taiwanese YouTuber “Sheng Jieshi,” who has over a million subscribers, recently listed three reasons to analyze why the Ethereum price may soon start to surge.
Despite the green light given by the U.S. Securities and Exchange Commission (SEC) for the launch of the Ethereum spot ETF, Bloomberg analysts expect that the Ethereum spot ETF will be issued as early as July 2. Nevertheless, the price of ETH has been continuously declining recently, reaching a low of $3,212 at one point during noon, the lowest since May 20.
Sheng Jieshi is optimistic about a potential surge in ETH. Despite the gloomy market outlook, Sheng Jieshi, a Taiwanese YouTuber with over one million subscribers, recently tweeted an analysis suggesting that ETH may be on the verge of a major surge.
Sheng Jieshi first explained that based on the weekly trend chart of ETH, the red line below the upward trend line has been providing support since December 2016 when ETH was trading near $6. In October 2023, ETH fell below the red line for about seven weeks but later rebounded.
Furthermore, Sheng Jieshi pointed out that based on the weekly momentum indicator (MOM) of Ether, all three MOM indicators are bullish, indicating a potential preparation for a significant rise. According to cryptocurrency trader Justin’s backtesting, this method of judgment is simple and clear, and can indeed capture very large swings.
Lastly, Sheng Jieshi listed the third reason for a bullish outlook, stating that the weekly Moving Average Convergence Divergence (MACD) indicator of ETH is exhibiting a golden cross above the zero axis, indicating a bullish trend. He mentioned that many people consider MACD as a “retail investor indicator” because it usually indicates a certain degree of upward movement after the golden cross. He emphasized the importance of not going against mathematics and suggested that building positions at the bottom of the red slope line could be a good choice.
However, Sheng Jieshi also cautioned that Andrew Kang, co-founder of Mechanism Capital, recently expressed a bearish view on the future of ETH. Kang believes that the key to determining how much upside potential the Ethereum spot ETF can provide for ETH lies in whether Ethereum can develop innovative economic improvement approaches. Kang stated that if Ethereum can achieve significant breakthroughs in both technology and application, its upside potential will be more considerable. Conversely, if effective economic improvement methods cannot be found, its upside potential will be limited. He predicted that after the launch of the Ethereum spot ETF, its ability to attract funds will be limited, and the price of ETH is expected to range between $2,400 and $3,000.
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