Ethereum price made a strong bullish breakout on Tuesday.

Investors expect companies to launch of several Ethereum ETFs.

Ethereum price staged a strong recovery on Tuesday as investors remained optimistic about cryptocurrencies. ETH coin jumped to a high of $1,738 on Tuesday, the highest level since August 17th. It has soared by more than 11% above its lowest level this month.

The main catalyst for the Ethereum price surge was the decision by a US court to side with Grayscale. The lawsuit emerged from a decision by the SEC to arbitrarily reject Grayscale’s attempt to convert its GBTC ETF into a spot ETF.

In the verdict, the court said that the SEC should review and approve the ETF. As a result, investors hope that the SEC will move on to approve the fund together with those requested by companies like Blackrock, Vanguard, and Invesco.

Grayscale’s initial strategy will likely be to convert the $5.2 billion Grayscale Ethereum Trust (ETHE) into a spot ETF. An ETF operates best because it does not have the discount to Net Asset Value (NAV). Today, the market price of ETHE stands at $11 while the value of holdings stand at $16.72.

Other companies like Blackrock and Invesco could also apply for their Ethereum ETFs. The challenge for Ethereum is that it has become significantly different from Bitcoin. By merging with the Beacon Chain, Ethereum transitioned into a proof-of-stake coin. 

SEC’s Gary Gensler has previously argued that Ethereum, because of its staking features, has transitioned into a financial security. He believes that brokers and exchanges that hold ETH for staking should provide more disclosures to investors.

Analysts believe that the agency has a better chance of convincing a court about Ether being a security than in the XRP case.

The 4H chart shows that the ETH price moved from a consolidation phase and made a strong bullish breakout. It has moved above the crucial resistance level at $1,702, the highest level on August 23rd. The coin has also moved above the 25-day and 50-day moving averages.

Most importantly, it seems like it is forming a small bullish flag pattern. Therefore, the outlook for the coin is bullish, with the next level to watch being at $1,800. A move below the key support of $1,702 will invalidate the bullish view.

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The post Ethereum price prediction: ETH has more short-term upside appeared first on CoinJournal.

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