The European Union is set to hold the much-anticipated elections this week. Experts believe this could be a monumental period for the crypto industry in the region amid the push for the implementation of the Markets in Crypto-Assets (MiCA) regulatory framework. These elections carry a lot of weight and may shape the future of the industry including the go-ahead for firms to operate spot Ethereum ETFs.
Chances Of Spot Ethereum ETF Licensing In The EU
The political landscape ahead of the elections to be held between June 6 and 9 shows that right-wing parties have a chance to gain substantial ground in the European Union.
Should this shift take place, the crypto industry could start to see “more stringent controls or, conversely, more supportive policies depending on the composition of the new parliament,” Jag Kooner, Bitfinex’s head of derivatives said in a statement.
Lawmakers in the European Union are expected to have a profound impact on the implementation of MiCA, the first holistic regulatory framework for digital assets in the region. These laws will come into effect beginning of December.
After the Securities and Exchange Commission (SEC) approved Ethereum ETFs in the US, the implication of MiCA could pave the way for similar products in the EU.
Kooner added that the buzz around Ethereum ETF approval in the EU is gaining momentum. This follows the listing of “ETH ETFs on the DTCC in anticipation of regulatory approval,” therefore, setting a solid precedent for the EU to make the step.
Ethereum Price Forecast: On The Cusp Of The Next Breakout
Ethereum has been stuck below $3,800 since early last week. The sideways trading backed by support at $3,700 can be attributed to reducing interest among traders who are not confident in ETH’s
ability to sustain the uptrend above $4,000.
Trading this week has started on a positive note, with Ethereum price climbing above $3,800 on Monday. Several indicators back the short-term uptrend including all three Exponential Moving Average (EMA). The 20-day EMA holds at $3,619 in line to provide support, the 50-day at $3,420, and the 200-day at $2,940.
A recently formed golden cross reinforces the bullish grip. This pattern is often used to back a bullish outcome. It forms when a shorter-term moving average crosses above the longer-term moving average. In ETH’s case, the 20-day EMA flipped above the 50-day EMA on May 22.
Although seemingly bullish, Ethereum price prediction shows the token, facing the 78.6% Fibonacci ratio as the immediate resistance. Breaking this hurdle would assure traders of the bulls’ resilience and reinvigorated push for a new phase past $4,000.
Importantly, Ethereum holds between two key levels, including the resistance marked in red and the support marked in grey on the chart. Movement on either side of this range could shape where ETH price heads next.
While a breakout above $4,000, targeting new all-time highs of $5,000 is likely, the volatility in the crypto market cannot rule out another drop to $3,000. Technical indicators like the RSI and the MACD will play a role in affirming or denouncing the bullish breakout. The RSI holds at 65 after correcting from the overbought region and the MACD is at 170 and showing potential for recovery.
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