Ethereum Nears Crucial Breakout: Could $4,000 Be The Next Move?
21 May 2024 - 8:00AM
NEWSBTC
Ethereum, the second-largest cryptocurrency by market
capitalization, is currently poised at a crucial juncture, with a
prediction of a potential breakout. Prominent crypto analyst Jelle
recently pointed out that Ethereum is nearing the end of a falling
wedge pattern, a situation often interpreted as a bullish signal in
technical analysis. Related Reading: Is Ethereum Set For A Major
Rally? Options Traders Bet Big On $3,600+ Targets For June
Technical Indicators And Market Sentiment Jelle observed a falling
wedge pattern on Ethereum’s chart, which emerges as ETH recently
reclaimed its 100-day Exponential Moving Average (EMA), a
development that further bolsters the bullish case. According to
Jelle, if Ethereum can sustain this momentum and push past the
upper boundary of the wedge, it might set its sights on the $4,000
level, a significant “psychological and technical” threshold. $ETH
is close to breaking out from this falling wedge! After reclaiming
the 100-day EMA, all it needs is a little push to break out from
the multi-month continuation pattern. Target: >$4000. 👀📈
pic.twitter.com/IW5eIQWXzG — Jelle (@CryptoJelleNL) May 20, 2024
The anticipation of this breakout is heightened by the current
market dynamics, where Ethereum is trading just above $3,000,
specifically trading at price of $3,088, at the time of writing.
The asset has experienced a modest increase of 0.2% in the last 24
hours and a total of 4.1% over the past week. However, looking at
the price chart, Ethereum appears to have been consolidating just
above the $3,000 level, suggesting a building base for future
significant movement. This consolidation period, often called
accumulation, may be largely due to market participants awaiting
the upcoming decision from the US Securities and Exchange
Commission (SEC) on the approval of the much-anticipated spot
Ethereum ETF. With this critical announcement expected later in the
week, buyers and sellers appear to be in a holding pattern,
cautiously awaiting the news that will likely determine their next
strategic moves. Ethereum Regulatory Decisions And Market
Speculation So far, Bloomberg’s Senior ETF Analyst, Eric Balchunas,
has expressed a cautious stance concerning the spot Ethereum ETF
estimating only a 25% chance that the spot ETF will receive
approval. On the other hand, Nate Geraci, President of the ETF
Store, has revealed that the process for ETF approval involves
several critical steps, including the acceptance of both 19b-4
filings (Exchange Rule Changes) and S-1 registration statements
(initial registration forms for new securities). Related Reading:
Expert Sets Timeline For When Ethereum Price Will Begin Rally To
$10,000 While there is optimism that the 19b-4 filings might be
approved, there is less certainty about the S-1s. The SEC’s slow
engagement with these filings could indicate a prolonged review
period, which might delay the introduction of Ethereum spot ETFs.
SEC decision deadline this week on spot eth ETFs… SEC must approve
both the 19b-4s (exchange rule changes) & S-1s (registration
statements) for ETFs to launch. Technically possible for SEC to
approve 19b-4s & then slow play S-1s (esp given reported lack
of engagement here). — Nate Geraci (@NateGeraci) May 19, 2024
Featured image from Unsplash, Chart from TradingView
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