Tomorrow, the $ETH ETF decision will be announced, and more likely than not, it will be an approval.

How will the markets react?

We’ll take a look at the $ETH chart and then look back at how $BTC reacted when the bitcoin ETF was approved.

The $ETH chart

Jesse went over the $ETH chart today on the livestream, and he actually didn’t mention the ETF at all.

He judged it based on the momentum he’s seeing, and he pointed out a few things.

1. $ETH is ultrabullish on the daily

The Sharp Shooter Indicator is showing $ETH in orange—which means it’s ultrabullish on the daily.

The last time that happened, it stayed that way for about a month and ran up 50% before the correction started.

So one possible path is that it just keeps trending upward. The 100% extension would put the next top ~$5.3K.

2. $ETH is getting far from the trending dots.

Jesse also noted that $ETH price has gotten pretty far away from the trending dots on the Sharp Shooter indicator.

When that happens, price sometimes needs to go sideways, waiting for the trending dots to catch up.

3. $ETH has put in a higher high.

Jesse’s last note was that price is putting in a higher high, and so that makes it more likely that the low is in here and that price is more likely to push up higher.

Even if the ETF is a sell-the-news event, I’d still expect it to put in a higher low with support around $3.2K at the lowest.

This might be if the ETF is momentarily rejected,

What happened when the Bitcoin ETF was approved?

When the bitcoin ETF was approved, BTC pumped leading up to the approval, and then tumbled 20% over the next 11 days.

Then it went on to rise another 91% over the next 50 days.

My only caution in translating this example to $ETH is that bitcoin had a lot more warning leading up to the ETF approval.

This gave price a lot more time to pump in anticipation.

$ETH, in comparison, has been much more of a surprise to the market.

If there is a deeper retrace and it’s a sell-the-news event, I’d still expect a higher low to get put in, rather than the deeper tumble bitcoin will take.

On the livestream, Jesse showed other assets like bitcoin and $LINK that were looking to put in higher lows, and so a short-term pullback on $ETH directly after approval might achieve that.

Either way, there should be some volatility on the $ETH chart today with the approval, so be careful with lower timeframe trading!

Want more of this? Less? Too detailed? Not detailed enough? Let us know!

We read all the feedback and take it seriously. Some love from past newsletters:

Want to learn more about trading?

If you love charts, then make sure to follow our posts, videos, & live streams here:

• Jesse Olson Twitter (66,000+)

• Jesse Olson Youtube (2,400+)

• Market Sniper Twitter (8,000+)

Ready to block out the noise? Join us in the discord with either one of the subscriptions by signing up here: Market Sniper Website

Tell a friend about us!

Disclaimer

The contents of this newsletter are expressed in my opinion only, none of which is financial advice. Always do your own research as this information is intended for educational & entertainment purposes only.