Published
6 months ago on
May 28, 2024
A key technical chart formation suggests that Ether‘s price is poised for a significant breakout, potentially reaching new all-time highs.
The question remains: Can Ether turn the $4,000 psychological mark into a solid support level?
Over the past week, Ether’s price surged by over 27%, converting critical resistance levels into support.
This impressive rally has seen Ether break out of its falling wedge chart pattern, which typically signals a potential reversal from a downward trend.
Crypto trader Jelle, in a May 27 X post to his 83,000 followers, highlighted the breakout’s significance: “ETH broke out from the falling wedge, then flipped key areas into support & now pushes for $4,000.
“New highs and new all-time highs are next.”
Additionally, the decreasing dominance of Bitcoin suggests that traders are shifting their focus to Ether.
The ETH/BTC pair has rebounded recently, with Bitcoin’s dominance dropping by 0.98% over the past five days, while Ether’s dominance increased by 4.4%.
In the last 24 hours alone, Ether’s dominance rose by 1.45%, whereas Bitcoin’s dominance fell by 0.57%, according to TradingView.
The current price rally of Ether is largely attributed to positive developments surrounding the first spot Ether exchange-traded funds (ETFs).
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On May 20, Ether’s price jumped nearly 20% in a single day, following reports that the U.S. SEC might approve spot Ether ETFs, potentially due to political pressure.
Reports indicate that ETF exchanges have been asked to update their 19b-4 filings.
Arthur Cheong, founder and CEO of DeFiance Capital, expressed optimism in a May 26 X post to his 167,000 followers: “4.5k before spot ETF goes live for trading [in my opinion].”
He believes Ether could reach $4,500 before the ETFs start trading.
Despite this optimism, Ether’s price faces significant resistance at the $4,000 mark.
A move above this level could liquidate over $433 million worth of cumulative leveraged short positions across all exchanges, according to CoinGlass data.
Popular crypto analyst Rekt Capital emphasized the importance of a weekly close above $3,956 to sustain bullish momentum.
In a May 26 X post, he stated: “Ethereum just needs to Weekly Close above $3956 (green) to move into $4000+ territory. At the moment, #ETH is forming a Lower High.”
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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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