Ether's Price Poised to Break All-Time High Amid Market Shift and ETF Developments
Summary:
Ether's (ETH) price is set to break its previous all-time highs, as indicated by key chart analysis. Driven by a shift in focus from Bitcoin to Ether and developments around the launch of the first spot Ether exchange-traded funds (ETFs), Ether has seen a price rally of over 27% in the past week. However, stronger resistance is anticipated at the $4,000 mark. Ongoing bullish momentum would require a weekly closure above the $3,956 mark.
Propelled by a confluence of positive factors, Ether (ETH) is expected to break its previous all-time high as suggested by an important chart analysis. Will we see the $4,000 mark turning into a solid support for Ether?
In the past week, the price of Ether has witnessed a strong rally with an increase of over 27%, leading to a transformation of critical resistance areas into support. This growth phase has seen Ether escaping from its declining wedge pattern, a strong sign for a potential switch from the previous downtrend. This imminent breakout could lead to a rally targeting new record highs, as suggested by cryptocurrency trader Jelle who shared his views to his 83,000 followers on May 27th.
The dwindling dominance of Bitcoin (BTC) indicates a shift of trader focus towards Ether, as apparent by the uptick in the ETH/BTC pair in recent days. In fact, in the past five days, Bitcoin's dominance dropped by over 0.98%, while Ether's dominance gained 4.4%.
Within the last day, according to TradingView stats, Ether's dominance increased by 1.45%, while that of Bitcoin dipped by 0.57%.
The primary credit for the surge in Ether's price can be given to positive developments revolving around the initial spot Ether exchange-traded funds (ETFs). Reports on May 20th about the US SEC's possible change of stance on spot Ether ETFs resulted in nearly a 20% surge in Ether's value within a day.
This turnaround reportedly happened due to political pressure leading the SEC to instruct ETF exchanges to revise their 19b-4 filings. Arthur Cheong, founder and CEO of blockchain investment firm DeFiance Capital, fueled investor optimism by predicting a rally up to the $4,500 mark for Ether before the commencement of trading for the debut spot Ether ETFs.
Nonetheless, Ether's price rise is likely to face some resistance at the $4,000 mark. Overcoming this threshold could result in liquidation of short positions worth over $433 million across all exchanges as indicated by CoinGlass data.
As per the analysis of popular crypto expert Rekt Capital, Ether's enduring bullish momentum necessitates a weekly close above the $3,956 level.
Published At
5/27/2024 6:08:38 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.