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Ethereum Price Forecast: Is The EU Poised To Approve Ethereum ETFs After Elections?

Ethereum Price Forecast: Is The EU Poised To Approve Ethereum ETFs After Elections?

Ethereum Price Forecast: EU Elections Could Set the Stage for Ethereum ETFs

This week’s European Union elections could have a significant impact on cryptocurrency regulations, particularly the Markets in Crypto-Assets (MiCA) framework, potentially paving the way for the approval of spot Ethereum ETFs. With the EU poised to conduct its much-anticipated parliamentary elections, experts speculate this could be a pivotal moment for the crypto industry within the region.

Potential Impact of EU Elections on Spot Ethereum ETF Licensing

The political landscape is poised for potential change with the elections scheduled between June 6 and 9, where right-wing parties could gain substantial influence. Such a shift could result in “more stringent controls or, conversely, more supportive policies depending on the composition of the new parliament,” according to Jag Kooner, Bitfinex’s head of derivatives. These developments could significantly affect the implementation of MiCA, set to take effect in December, which would be the first comprehensive regulatory framework for digital assets in the EU.

Following the approval of Ethereum ETFs in the US by the Securities and Exchange Commission (SEC), the enactment of MiCA could facilitate similar approvals within the EU. Kooner noted that there is growing buzz around Ethereum ETF approvals in the EU, especially after the recent listing of “ETH ETFs on the DTCC in anticipation of regulatory approval,” setting a strong precedent for regulatory advancements in the region.

Ethereum Price Forecast: On the Cusp of a Breakout

As of last week, Ethereum has been hovering below the $3,800 mark, with the market showing sideways movement supported by a base at $3,700. This indicates a hesitancy among traders, questioning ETH’s capacity to sustain an uptrend above the $4,000 threshold. However, the trading week began positively, with Ethereum’s price climbing above $3,800 on Monday, backed by positive signals from all three Exponential Moving Averages (EMA): the 20-day EMA at $3,619, the 50-day at $3,420, and the 200-day at $2,940.

A recently formed ‘golden cross’—a bullish pattern where a shorter-term moving average crosses above a longer-term one—reinforces optimistic sentiments. In Ethereum’s case, the 20-day EMA surpassed the 50-day EMA on May 22. Although Ethereum faces immediate resistance at the 78.6% Fibonacci level, surpassing this could confirm the bulls’ strength and pave the way for a push beyond $4,000.

Technical Indicators and Ethereum’s Next Moves

Ethereum currently sits between critical levels marked on charts as resistance (red) and support (grey). Movement beyond this range could significantly dictate Ethereum’s price trajectory. While a breakout above $4,000 targeting new all-time highs of $5,000 is conceivable, the inherent volatility in the crypto market should not be underestimated, which could potentially see another drop towards $3,000. Key technical indicators, such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), are crucial in confirming or refuting the potential bullish breakout. The RSI stands at 65, having recently adjusted from the overbought region, while the MACD is at 170, showing potential for further recovery.

Conclusion

The upcoming EU elections and the implementation of MiCA are critical factors that could determine the future of Ethereum ETFs in Europe. Investors and market watchers will be keenly observing these developments, as they could herald a new era for cryptocurrency regulation and investment opportunities within the region.

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Name Price24H (%)
Bitcoin(BTC)
$64,634.39
5.02%
Ethereum(ETH)
$3,468.26
5.71%
BNB(BNB)
$580.49
5.97%
Solana(SOL)
$157.66
4.42%
XRP(XRP)
$0.56
4.93%

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