Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has recently shown signs that a potential rally is coming.
Analysts have been paying close attention to various technical indicators, and one of them, Ali highlight A key signal that prices are about to surge.
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TD Sequential Signal to Buy Amid Ethereum Recovery
According to analysis by Alibaba social media platform
TD Sequential presents buy signal #Ethereum Daily charts!it expects $ETH A bounce of one to four candlesticks is possible. pic.twitter.com/Vg7FTl9X2a
— Ali (@ali_charts) May 15, 2024
This positive outlook is supported by Ethereum’s recent performance, with the asset gaining 2.3% in the past 24 hours.
However, Ethereum remains below the critical $3,000 mark. Despite the positive technical signals, external factors such as regulatory challenges could affect Ethereum’s trajectory.
Specifically, the U.S. Securities and Exchange Commission’s (SEC) Ethereum ETF spot filings may be declining, which is a concern as analysts such as Bloomberg’s Eric Balchunas say the SEC treats ETH as a security, which would May significantly reduce the chances of ETF approval.
TLDR: The SEC is asking commenters of Ethereum spot ETFs whether these filers have properly filed their ETF listing proposals as commodities. This suggests that the SEC may be considering deeming Ethereum a security, thereby denying it. Our odds of getting approved remain the same: almost zero. Well done… https://t.co/g9HGPzGyOp
— Eric Balchunas (@EricBalchunas) May 14, 2024
Market Sentiment and Options Trading Trends
Despite the challenges posed by the regulatory environment, market sentiment surrounding Ethereum remains largely bullish. The options market, in particular, shows a clear preference for calls over puts, showing traders are betting on rising Ethereum prices.
Data from leading crypto options exchange Deribit shows that the most popular execution price among these bullish bets is an ambitious $6,500.
The concentration of call options, especially those above the $3,600 mark, suggests that a large portion of the market expects Ethereum to reach higher levels by the end of June.
In contrast, Ethereum’s failure to break above the $2,925 resistance could trigger another price drop, according to recent analysis by NBTC. Initial support is near the $2,880 level, followed by major support at the $2,860 area.
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If Ethereum breaks below $2,810, it may drop towards the $2,740 mark, with further losses likely to push the price down to $2,650 in the short term.
Featured images from Unsplash, charts from TradingView
