With the approval of the spot ETH ETFs, traders believe that the price of Ethereum is poised to rise above $4,000
On May 27, traders kept pushing the price of Ether ETH
$3,881 beyond $4,000; the altcoin had a 3.5% increase for the day.
Ether had a great performance, rising 27% from a low of $3,048 on May 20 to a 10-week high of $3,964 on May 27, according to Cointelegraph Markets Pro and TradingView data.
The markets have largely determined the course of Ether’s seven-day performance on the anticipation that spot Ethereum exchange-traded funds (ETFs) will be approved in the United States. Despite ETH’s underwhelming performance after the approval, the upward trajectory towards $4,000 is considered substantial.
According to crypto analyst Jelle, Ether has completed a lengthy accumulation period, and the price is poised to enter the “stratosphere” now that spot Ethereum ETFs have been approved.
Jelle explained in a May 27 post on X that market participants are “finally witnessing bull-market ethereum again,” even though it “took much longer than anticipated.”
Michaël van de Poppe, an analyst and proprietor of MN Capital, arrived at comparable conclusions by examining a weekly ETH/BTC chart. As per van de Poppe’s analysis, a bullish divergence on the weekly relative strength index (RSI) indicated the initiation of capital outflow from Bitcoin BTC$69,569
into alternative cryptocurrencies after a protracted period of low cryptocurrency activity.
“The chances are significant that the 2.5-year bear market is finally over for Ethereum.”
Cryptocurrency trader Matthew Hyland stated on X on May 27th, “#ETH confirms a bullish divergence and a break of the downtrend,” adding that a surge in trading volume would “further validate the breakout.”
According to fellow analyst Tuur Demeester, the anticipated euphoria surrounding the Ethereum market has not yet come to pass. Following the 25th of May, Demeester published the subsequent chart on X: “For the ETH/BTC pair to become bullish, it must surpass 0.06.”
At the time of publication, the ETH/BTC pair was trading at 0.056, where immediate support was provided by the 50-week simple moving average (SMA).
Maintaining this level of support was crucial for the price to enhance the likelihood of reversing the long-term descending trendline (blue) into support. ETH/BTC will then confront resistance at the 0.06 level, which is embraced by the 200-week SMA, should this occur.
The chart below demonstrates that the pair is not yet out of the woods, even if it breaches this level. To validate the breach, the 100-week SMA at 0.063 must be reversed.
In the interim, information from on-chain metrics provider CryptoQuant indicates that ETH on exchanges has decreased for the past year, falling to 13.58 million ETH on May 20—a level not seen in six years.
The decreasing Ether balance on exchanges signifies traders’ adoption of long-term investment strategies, indicating increased confidence in the long-term potential and value of Ether.
