Bitcoin has broken through the significant $70,000 mark on May 27, following a challenging three-day period, showcasing that the bulls are effectively in control. Despite this progress, certain analysts remain skeptical about a sustained breakout in the short term. Rekt Capital, a well-known analyst, pointed out that Bitcoin’s post-halving reaccumulation phase generally spans 160 days, suggesting that the cryptocurrency might remain stagnant for several weeks.
What Does Ethereum’s Future Hold?
Meanwhile, Bitcoin’s subdued performance has shifted the spotlight to Ethereum, bolstered by the approval of spot Ethereum exchange-traded funds. A number of analysts are optimistic about Ethereum’s potential rise. Arthur Cheong, founder of DeFiance Capital, voiced his prediction on X, asserting that Ethereum could climb to $4,500 ahead of the spot ETF funds launch.
On May 24, Bitcoin climbed to its 20-day EMA average of $66,798 and eventually surpassed $70,000 on May 27. This move suggests that bulls are trying to solidify their position. The BTC/USDT pair may advance toward a critical resistance at $73,777.
How Will Ethereum React to Market Forces?
Ethereum’s price ascended from $3,730 on May 26, indicating that bulls have established this level as a support zone. The goal now is to maintain a price above $3,950. Success in this endeavor could propel the ETH/USDT pair towards a robust resistance at $4,100, and overcoming this barrier could see the pair surge to $4,868.
Key Market Insights
Here are some actionable insights for investors:
- Bitcoin has the potential to target the $80,000 to $84,000 range if it breaks past $73,777.
- A failure to breach the resistance could see Bitcoin fluctuating between $59,600 and $73,777.
- Ethereum’s price stability above $3,950 could pave the way for advances up to $4,868.
- A decline below $3,730 could pull Ethereum back to its 20-day EMA average of $3,455.
- The launch of Ethereum ETF funds could reduce Ethereum’s circulating supply, possibly driving up its price.
If the bears aim to halt this rise, they must drive the price below the breakout level of $3,730, potentially initiating a drop to $3,455, which is expected to act as strong support. Should the price rebound from this level, bulls may attempt another push to $4,100. The forthcoming launch of ETF funds in the Ethereum domain is expected to reduce its circulating supply, thereby elevating its price. This scenario might also create a bullish trend for various altcoins, particularly Ethereum.