Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, has been on a roller coaster ride for investors lately. After dipping below $2,820, it surged above $3,200, only to give back some of its gains. However, analysts remain optimistic, citing technical indicators and upcoming key regulatory decisions as potential catalysts for near-term price gains.
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Is Ethereum Price About to Breakout?
Technical analysts are pointing to bullish signals that Ethereum may be on the verge of a rebound. Analyst Titan Of Crypto believes that a successful “bullish crypto pattern” has been staged and all expected goals have been achieved. Currently, Ethereum is sitting at a key support level, the 38.2% Fibonacci retracement level, which is often seen as a springboard for bullish momentum.
#altcoin #Ethereum Bounce incoming.
The bullish crypto pattern worked perfectly and all targets were reached🎯.#ETH It is currently at the 38.2% Fibonacci retracement level, also known as the “first stop.” In a bull market, this level remains unchanged.
I expect a rebound from this level. 🚀 pic.twitter.com/o9e6VLEREz
— Cryptocurrency Titan (@Washigorira) May 12, 2024
Titan said this level has historically been an important support area. The optimistic outlook expects prices to rebound from here.
Analyst JACKIS highlighted the importance of Ethereum’s recent surge above $4,000 in March, which fueled the bullish sentiment. JACKIS believes this represents a significant shift in market structure toward a long-term upward trend.
huge collapse #ETH not coming
Here’s a reality check:
Our range of thermal fluids is large #Ethereum With the push for 4K in March, we have broken down the rise in market structure 🗝️Additionally, the local weekly MS caused it to remain bullish, marked with HL on the chart… pic.twitter.com/QisXiDUXxr
— Jackis (@i_am_jackis) May 13, 2024
SEC Decision: Potential Game Changer
The upcoming decision from the U.S. Securities and Exchange Commission (SEC) could give a significant boost to the price of Ethereum. By May 25, the U.S. Securities and Exchange Commission (SEC) is expected to rule on three applications for Ethereum-based exchange-traded funds (ETFs).
The SEC’s approval of these ETFs will open the door for institutional investment in Ethereum, potentially leading to a surge in demand and price. Conversely, a rejection could dampen investor sentiment and trigger a pullback.
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Local market structure hints at underlying bullish sentiment
A closer look at Ethereum’s weekly chart reveals that despite the recent price decline, there are still bullish undercurrents. Higher lows and higher highs over the past few weeks indicate a healthy uptrend, and the current retracement is viewed as a natural consolidation phase.
Featured image from Defense.gov, chart from TradingView
