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Ethereum shines brightly: crypto analysis from May 21, 2024
While Ethereum seemed on the verge of oblivion, its price rebounded by almost 20%. Let’s take a look at the future prospects of ETH together.
Ethereum (ETH) Price Status
After facing downward pressure that pushed it to $2,900, Ethereum price stabilized at this price level. We had to wait until the week of the final deadline for the Ethereum spot ETF approval by VanEck, 21Shares & ARK, so that the volatility of cryptocurrency increases. Fortunately for Ethereum, expectations that became more optimistic on Monday May 20 allowed the cryptocurrency to appreciate by more than 20%. Thus, Ethereum reached a resistance level of $3,700 as shown in the analysis of May 9, 2024.
At the time of writing, one Ether is worth $3,650. It appears that the cryptocurrency is now stabilizing below its resistance level. These recent bullish fluctuations have allowed ETH to once again position itself above its 50-day moving average, which could reassure investors about the cryptocurrency’s trend. On the side of Ethereum dynamics, a notable recovery can be observed, as evidenced by oscillators and the price of Ethereum itself. All these elements therefore seem encouraging for the continuation of this movement.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today, he is a trainer at Family businessa community of thousands of own-account traders active since 2017. You will find Lives, educational content, and mutual assistance around the financial markets in a professional and warm atmosphere.
Assumptions for the price of Ethereum (ETH)
- If Ethereum price remains above $3,400, we could expect a breakout to $3,700. The next resistance to consider would be $3,900 or even $4,100. If the upward movement continues, a new high at $4,400 could be reached. If Ethereum’s momentum picks up, it would not be impossible for Ethereum to reach its all-time high around $4,800. At this point, that would represent an increase of more than 31%.
- If Ethereum price fails to stay above $3,400, a return of around $3,100 could be on the cards. The next support to consider, if the bearish movement continues, would be in a price range around $3,050. At this stage, this would represent a drop close to -17%.
Conclusion
After a period of decline, Ethereum has seen a remarkable recovery, supported by optimistic expectations related to the approval of Ethereum spot ETFs. This positive dynamic, illustrated by the reaching of a key resistance level and a renewed investor confidence, suggests an encouraging trend for the cryptocurrency. However, we will have to wait for official announcements to confirm the acceptance of these ETFs and, consequently, the continuation of the craze for cryptocurrency. It will therefore be crucial to closely observe the price reaction at different key levels to confirm or refute the current hypotheses. It is also important to remain vigilant for potential “counterfeits” and market “squeezes” in each scenario. Finally, remember that these analyzes are based solely on technical criteria and that the prices of cryptocurrencies can also change quickly depending on other more fundamental factors.
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Family Trading is a Community of own-account traders active since 2017 offering Lives, educational content and mutual assistance around the financial markets including that of cryptocurrencies with Elie FT, a passionate investor and trader on the crypto market.
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