Ethereum ETF Approval Sparks Optimism: ETH Ready for $1700 Surge?

Ethereum just scored a big win with the SEC approving options trading for several Ethereum-based ETFs. This game-changer for ETH offers investors fresh ways to hedge, speculate, and interact with Ethereum’s price without directly owning the asset. BlackRock’s iShares Ethereum Trust (ETHA) took the lead, rolling out its options on the Nasdaq ISE. This move is expected to shake things up in the market. Others quickly followed on Cboe BZX. While Ethereum’s market cap still trails behind Bitcoin, experts say this move could bring in institutional gravity and improve liquidity. With ETH recently facing sharp losses and bearish sentiment, this Ethereum ETF approval might be the spark it needs for a turnaround, as an ETH update shows signs of potential recovery.

Ethereum ETF Options Trading Approved: Will This Fuel a Rebound?

Earlier this month, the U.S. SEC gave the green light for options trading tied to Ethereum ETFs, a key moment for the second-largest cryptocurrency. Trading has already kicked off, with BlackRock’s ETHA options debuting on Nasdaq ISE, followed by Grayscale and Bitwise listings on Cboe. This regulatory nod expands access for traditional investors, allowing them to gain ETH exposure through familiar products with added flexibility.

Experts suggest this development could attract institutional players, increase market participation, and improve ETH liquidity. Some even argue it could narrow Bitcoin’s dominance gap, especially with ETH’s “programmability” now appealing to fund strategies. Still, risks remain. Ethereum’s smaller market cap leaves it more vulnerable to volatility, including gamma squeezes, rapid price spikes triggered by options hedging behavior. Yet, many believe the benefits outweigh the risks.

The introduction of options opens the door for arbitrage, high trading volumes, and more sophisticated strategies, positioning Ethereum for a potential market comeback. While it’s no magic fix, this ETF update may shift investor sentiment at a critical time for Ethereum’s future.

Ethereum Price Analysis of April 18

The trading day of April 17th opened with strong buying pressure, as seen on the ETH/USDT 5-minute chart. Bulls dominated early action, pushing prices upward, supported by an overbought RSI signal around 05:40 UTC. This surge, however, was short-lived. By mid-session, sellers regained control. A death cross on the MACD at 14:35 UTC paired with oversold RSI conditions triggered increased sell orders, dragging the price down to the $1563.38 support zone. A temporary bullish reversal followed as buyers re-entered the market. A golden cross formed on the MACD, and the RSI returned to overbought territory, allowing ETH to rally and test resistance at $1617.04. 

ETH/USDT chart, analyzed by ShwetaCW, published on TradingView, April 18, 2025

However, this level attracted aggressive profit-taking, and another MACD death cross soon flipped momentum in favor of the bears. The downward trend extended into April 18th. But at 06:40 UTC, a new golden cross on the MACD suggested a potential shift. This was further validated by an overbought RSI at 08:35 UTC, indicating fresh buyer interest. According to Ethereum price prediction, if bulls maintain control, ETH could break above $1617.04 and target $1700. If sellers take over, the price might fall below $1563.38 and revisit $1500.

Ethereum Price Outlook

As Ethereum gains momentum with the SEC-approved Ethereum ETF options, it’s stepping into both new opportunities and some risks. How the market reacts will be crucial in deciding whether this move boosts Ethereum price. Ethereum could aim for resistance at $1700 if the bullish momentum keeps going. However, according to the latest ETH update, if bearish pressure persists, it could retest support near $1563.38.