Bitfinex Alpha: ETH faces a key resistance level of $4,000, and if it breaks through successfully, it may rise strongly

The latest report from Bitfinex Alpha shows that the market remained resilient last week, with Bitcoin remaining above the critical $62,000 level, driven by the unexpected approval of an Ethereum spot ETF. Earlier last week, both BTC and ETH surged in anticipation of the upcoming announcement, but prices fell after the news was confirmed. While it is certainly positive for the industry as a whole that further regulated tools are now available to gain exposure to crypto assets, the US SEC has made it clear that in the case of ETH, it will not approve any ETF that seeks to distribute ETH staking rewards to investors. In this case, more investors may be attracted to investing directly in ETH itself, thereby freely investing in assets and earning additional returns. This suggests that enthusiasm for Ethereum ETFs may not be as high as Bitcoin ETFs so far. In fact, as of May 24, Bitcoin ETFs set a record of 10 consecutive days of inflows, with BlackRock's IBIT leading the way with $16.35 billion. In addition, a clear indicator is that last week's surge in Ethereum prices was driven by increased activity in the perpetual futures market. The $4,000 resistance level remains a key psychological barrier, and while short-term volatility and consolidation are expected, the report believes that if this resistance level is broken, ETH may see a strong uptrend. The BTC and ETH implied volatility indexes provide a good illustration of the state of the BTC and ETH markets. The pattern we are seeing now is that intense speculation and significant market volatility accumulate around perceived risk events such as the Bitcoin halving, the last FOMC meeting, and the approval of the Ethereum ETF, but then prices stabilize almost as quickly, and once these events are over, implied volatility and volatility risk premiums decrease. In the broader economic field, two key Fed officials last week provided important insights on how they view the current economic situation, reaffirming their firm commitment to reducing inflation to the 2% target. Although a resilient labor market has boosted overall economic activity, persistent inflation and financial stability remain key areas of focus for policymakers.