A significant technical chart formation suggests that Ethereum’s price is on the verge of hitting new all-time highs. The key question is whether Ethereum can secure the $4,000 level as a solid support during this upward movement. This past week has seen Ethereum’s price rise by more than 27%, converting critical resistance levels into support. Here are the noteworthy developments and expert insights.
What Is Driving Ethereum’s Surge?
Following its recent price increase, Ethereum has broken out from a falling wedge chart pattern, a move that typically indicates a reversal from a downtrend. Crypto investor Jelle, in a May 27 post to his 83,000 followers, suggested that this breakout might propel Ethereum toward new all-time highs. “Ethereum broke out of the falling wedge, turned key areas into support, and is now pushing $4,000. New peaks and new all-time highs are next,” he commented.
The declining Bitcoin dominance and the rising ETH/BTC pair over the last few days suggest that investors are shifting their focus to Ethereum. Bitcoin’s dominance has decreased by 0.98% in the past five days, while Ethereum’s has grown by 4.4%. According to TradingView, Ethereum’s dominance increased by 1.45% in the last 24 hours, whereas Bitcoin’s fell by 0.57%.
Which Price Predictions Are Gaining Attention?
Ethereum’s recent price rally is largely attributed to the positive news surrounding the first spot Ethereum exchange-traded funds (ETFs). On May 20, Ethereum’s price skyrocketed nearly 20% in a single day after reports surfaced that the US SEC might have requested updates to the 19b-4 filings for spot Ethereum ETFs due to political pressure.
Arthur Cheong, founder and CEO of DeFiance Capital, believes Ethereum’s price could soar to $4,500 before these ETFs begin trading. In a May 26 post to his 167,000 followers, Cheong stated, “Ethereum’s price could reach $4,500 before spot ETF funds start trading.”
Key Insights for Investors
– Ethereum breaking out from the falling wedge suggests a potential trend reversal.
– Growing investor interest in Ethereum is reflected in rising ETH/BTC dominance.
– Positive developments around spot Ethereum ETFs are major catalysts for price increases.
– Ethereum faces psychological resistance at the $4,000 level, a critical point for further gains.
Despite the optimism, Ethereum encounters substantial resistance at the $4,000 psychological barrier. CoinGlass data indicates that surpassing this level could trigger the liquidation of cumulative futures short positions worth $433 million across all exchanges. Whether Ethereum can maintain this momentum remains to be seen, but the indicators are promising.