Ether's Price Nudges $4,000 amid Ethereum ETF Approval and Bullish Market Shifts
Summary:
Ether's (ETH) price is steadily pushing towards the $4,000 mark, with a 27% rise from May 20 to May 27, primarily due to the market's anticipation of approval for Ethereum exchange-traded funds (ETFs) in the US. Analysts highlight a shift of capital from Bitcoin to altcoins following a bullish divergence. Meanwhile, Ether's decreasing balance on exchanges points towards traders' long-term investment strategies, indicating increased confidence in the cryptocurrency's potential.
The price of Ether (ETH) is persistently inching close to the $4,000 mark, as of May 27, recording a 3.5% increase for the day. Information from Cointelegraph Markets Pro and TradingView highlights a solid surge from Ether, which escalated from a low of $3,048 on May 20, to a remarkable 27% incline, reaching a 10-week peak of $3,964 by May 27.
The previous week's commendable performance of Ether can be attributed to the market's expectation of approval for Ethereum spot exchange-traded funds (ETFs) in the US. Although Ether's response post-approval appeared dull, reaching towards $4,000 is seen as noteworthy. According to crypto pundit Jelle, Ether has successfully completed a substantial accumulation phase and with the Ethereum ETFs now sanctioned, the price is geared to soar even higher.
While the process "took much longer than expected", Jelle described in a May 27 post that market players are "finally witnessing the bull market for Ethereum again". A similar standpoint was shared by Michaël van de Poppe, Analyst and founder of MN Capital, using the ETH/BTC weekly graph. As per van de Poppe, the Weekly Relative Strenght Index (RSI) has shown a bullish divergence, an indicator of capital transfer from Bitcoin (BTC) to altcoins after a prolonged crypto hiatus.
"The odds are high that Ethereum has finally emerged from the 2.5-year bear market," said van de Poppe. Matthew Hyland, a crypto trader, mirrored this sentiment in a May 27 post stating that an upswing in trading volume will substantiate the breakout.
Yet, analyst Tuur Demeester indicates that the Ethereum market frenzy is yet to fully set in. In his May 25 post, Demeester remarked that the ETH/BTC pair must break the 0.06 barrier to turn bullish.
Significantly, at the time of writing, the ETH/BTC pair was trading at 0.056, with the 50-week Simple Moving Average (SMA) acting as an immediate backstop. To boost the odds of overturning the long-standing downward trend line, the price needed to maintain this support. If achieved, ETH/BTC will rise to challenge the 0.06 resistance posed by the 200-week SMA.
However, it's crucial to remember that surpassing this mark doesn't mean all difficulties are behind. The pair will also need to overturn the 100-week SMA at 0.063 to solidify the breakout.
Meanwhile, on-chain metrics provider CryptoQuant's data indicates that the ETH balance on exchange platforms has been dwindling over the past year, hitting a six-year low of 13.58 million ETH on May 20. This reduction in Ether balance on exchanges signifies traders embracing a long-term investment approach, pointing to a growing belief in Ether's sustainable value and potential. Nonetheless, this report doesn't offer investment guidance or suggestions. All investments and trading moves carry risk, and readers should conduct independent research before decision making.
Published At
5/27/2024 10:43:42 PM
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