Can SEC approval of 3x Ethereum ETF lift Ethereum?

Traders Union
All News
Crypto
Ethereum gains 0.93% as SEC approves ETF

Highlights

The SEC approved a rule change on October 2, 2026, allowing the listing and trading of six 3x leveraged Ethereum ETFs, including one by Volatility Shares Trust.
Ethereum launched zkAPI and the Cobalt upgrade for Base to enhance privacy, scalability, and network stability for institutional and retail adoption.
ETH trades in a bullish trend with price expected to consolidate in the $2,661 to $2,738 range as short-term indicators warn of overbought conditions.

Regulatory milestone drives institutional interest as leveraged ETFs approved

The U.S. Securities and Exchange Commission's approval on October 2, 2026, of a rule change permitting the listing and trading of six 3x leveraged exchange-traded products—including a 3x Ethereum ETF structured through the Volatility Shares Trust—sets a significant regulatory milestone for Ethereum's institutional accessibility, according to Techflowpost and Coinedition. While trading of these ETFs is pending registration effectiveness, the development paves the way for expanded participation among both retail and institutional investors seeking leveraged exposure. In tandem, Ethereum's recent launch of zkAPI and the Cobalt upgrade for Base, as reported by Coinfomania, target improvements in privacy, scalability, and network stability, deepening the platform's technical value proposition as the network evolves.

Buy signals and overbought momentum as support and resistance tighten

On the technical front, ETH/USD trades above the MA-20 ($2,688) and MA-50 ($2,693) on the hourly chart, while the price remains well above the long-term MA-200 ($2,116) on the daily timeframe. The Ichimoku Kijun at $2,686 now acts as the nearest support, with a resistance band forming near the recent session high. Short-term momentum signals are mixed: MACD and RSI (59.15) both signal buy conditions, while the ADX stays neutral. However, Stoch RSI, CCI, and Bull/Bear Power all flag overbought conditions, suggesting buyers remain in control but may be nearing exhaustion. The Awesome Oscillator is neutral, indicating a potential pause or shift in momentum.

Sideways consolidation expected as breakout requires stronger momentum

In the near term, ETH is forecast to consolidate within a typical volatility band between $2,661 and $2,738 over the next several sessions. The baseline scenario favors sideways trading within this range, with probabilities skewed strongly toward further gains and a low chance of sharp declines. A bullish breakout would require a sustained move above $2,738, while renewed selling pressure could send ETH below the $2,661 support, marking the onset of a corrective phase.

Anton Kharitonov, Traders Union expert, notes that Ethereum’s technical setup is mixed despite positive news flow. He sees the SEC’s ETF approval as a significant regulatory event, but cautions that real inflows will only follow once trading is active. Overbought signals and a narrow price band signal limited momentum near term. "Until $2,738 is cleared with volume, I stay defensive and expect mostly sideways price action."

Earlier, analysts noted that cryptocurrency job openings accelerated in the third quarter even as applicant volumes declined, underscoring heightened competition for specialized talent. Now, with Ethereum trading above major moving averages and recent regulatory milestones broadening institutional accessibility, traders should monitor for a decisive move above $2,738 to confirm sustained momentum or a drop below $2,661 that could trigger corrective pressure.

Source of Data: ETH Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.