With its second-largest market capitalisation among cryptocurrencies, Ethereum (ETH), has lately been a rollercoaster for investors. It dropped below $2,820 then jumped to nearly $3,200 before reversing some of those increases. Still, experts are upbeat, pointing to technical data and a significant legislative action just ahead as possible triggers for a near-term price rise.
Ethereum Price Poised For A Breakout?
Technical analysts are pointing to positive signals that Ethereum might have a rebound back. With all expected milestones reached, analyst Titan of Crypto thinks a successful “Bullish Cypher Pattern” has played out. Ethereum currently rests below a key support level, the 38.2% Fibonacci retracing, sometimes regarded as the basis for increasing momentum in bull markets.
#Altcoins #Ethereum Bounce incoming.
The Bullish Cypher Pattern played out perfectly and all the targets got reached 🎯.#ETH is currently at the 38.2% Fibonacci retrace level also called “1st stop”. In a bull market this level holds.
I expect a bounce from this level. 🚀 pic.twitter.com/o9e6VLEREz
— Titan of Crypto (@Washigorira) May 12, 2024
This level has historically acted as a crucial support zone, says Titan. An optimistic outlook anticipates a price rebound from here.
Adding to the bullish sentiment, analyst JACKIS emphasizes the significance of Ethereum’s recent surge above $4,000 in March. This, according to JACKIS, represents a significant shift in the market structure towards a long-term uptrend.
THE GIGANTIC CRASH for #ETH isn’t coming
Here is a reality check:
We are in a big HTF range for #Ethereum and with the push to 4K in March we have broken 🗝️ market structure to the upsideAlso, the local Weekly MS leading into it remains bullish, marked on the chart with HL… pic.twitter.com/QisXiDUXxr
— JACKIS (@i_am_jackis) May 13, 2024
The SEC Decision: A Potential Game Changer
An impending ruling by the U.S. Securities and Exchange Commission (SEC) might significantly raise the price of Ethereum. On three applications for Ethereum-based Exchange-Traded Funds (ETFs), the SEC is slated to rule by May 25th.
If the SEC gives these ETFs a green light, institutional investment into Ethereum will be possible, therefore stimulating demand and price. On the other hand, a rejection can lower investor mood and set off a retreat.
Local Market Structure Hints At Underlying Bullishness
Examining Ethereum’s weekly chart closer suggests a strong undercurrent despite the recent price drop. Higher lows and higher highs all over the past few weeks point to a robust uptrend; the recent drop is considered as a normal consolidation phase.
Featured image from defense.gov, chart from TradingView
