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How Will Ethereum's Price React To Bitcoin ETF Approval?

·1 min

The U.S. Securities and Exchange Commission (SEC) is nearing its decision deadline on a Bitcoin ETF. Approval could have implications for the crypto market, including Ethereum. It may set a precedent for other crypto-based ETFs, as the approval process could establish a framework applicable to Ethereum. The SEC recently delayed decisions on several Ethereum ETF applications. This coincides with the SEC’s attempt to categorize some proof-of-stake cryptocurrencies as securities. However, Ethereum has not been challenged as a security. An approved spot Ethereum ETF could boost ETH prices. If a Bitcoin ETF is approved, it could increase crypto exposure among traditional investors, leading to increased demand for Ethereum. Conversely, a delay or denial could lead to short-term bearish pressure. Technical analysis suggests that ETH’s price is near resistance and may experience a correction, or, if approved, invalidate its rising wedge setup in favor of an ascending triangle pattern with a target price near $3,870.