Arthur Cheong, founder and CEO of Defiance Capital, has predicted that the price of Ethereum (ETH) could potentially hit $4,500 even before the launch of spot ETFs.

At press time, Ether is trading at $3,885 after adding 3.6% over the past 24 hours, according to CoinGecko data. 

As reported by U.Today, the SEC greenlit 19b-4s listing requests from a slew of Ethereum ETF issuers last week in a stunning U-turn. Prior to that, leading ETF industry analysts as well as major banking players of the likes of Standard Chartered claimed that these products were unlikely to be approved. 

After the news about imminent ETF approval broke on social media, the Ether price entered a major uptrend, surging from $3,600 to $3,900 in a span of just three days.

Weakening momentum 

Despite the major bullish catalyst, the leading altcoin has so far failed to gain a footing above the $4,000 level. It is also down 19.8% from its all-time high. 

According to 100eyes Crypto Scanner, the Ethereum price has seen bullish divergence on the hourly time frame. This bearish pattern occurs when an asset manages to make new highs, but the Relative Strength Index (RSI) records slower highs. Based on this particular chart, it is clear that Ethereum is currently experiencing weakening momentum despite the substantial price increase. The RSI recorded a lower high in the 65-70 range after Ether surged to $3,900, which is the main horizontal resistance level. 

If the bearish divergence ends up playing out, the price of the chief altcoin could experience a pullback from the current level. However, it is also likely that Ether will be able to break above $3,900 if the volume is strong enough.