SEC’s approval of spot Ether ETFs may drive ETH to new highs if key bullish indicators persist.
The recent approval from the United States Securities and Exchange Commission (SEC) for eight spot ETH exchange-traded funds (ETFs) has sparked optimism among crypto traders. One notable trader believes that Ethereum (ETH) could retest its previous highs, potentially reaching the $5,000 mark, if three crucial indicators continue their current trends.
Ethereum Dominance on the Rise
Ethereum’s market dominance has shown a significant uptick, rising by 19.56% over the past week. This increase follows the SEC’s initial approval of the spot Ether ETFs on May 23. The surge in Ethereum’s dominance suggests a possible shift into an ‘ETH Season,’ where Ethereum outperforms other cryptocurrencies. This trend is crucial for Ethereum as it indicates increasing investor confidence and a potential shift in market dynamics favoring ETH.
Another essential indicator pointing to a bullish future for Ethereum is the Fibonacci retracement. This mathematical tool predicts potential price levels where Ethereum might find support or resistance. Currently, the Fibonacci retracement is indicating strong support for ETH around the $3,692 mark. If these levels hold, Ethereum could aim for resistance targets at approximately $5,080.60 and $6,231.83. These price levels are significant as they represent potential points where Ethereum could face selling pressure or break through to new highs.
Parabolic Curve Indicates a Bullish Trend
The parabolic curve is another vital indicator suggesting that Ethereum is on a bullish trajectory. This tool helps identify potential trend changes by analyzing the placement of dots above or below price movements. For Ethereum, the parabolic curve shows a continued upward movement, marked by three phases: base one, base two, and base three. This pattern is crucial as it indicates a robust underlying trend, especially following a recent falling wedge breakout, which typically signals a strong bullish reversal.
While long-term indicators suggest a promising future for Ethereum, short-term price actions remain under scrutiny. Despite the SEC’s approval of the spot Ether ETFs, Ethereum’s price has seen little movement. This stagnation is likely because the positive news had already been priced in by the market, and actual trading of the ETFs has yet to commence.
Some crypto analysts believe it is critical for Ethereum to maintain its support around the $3,800 level to continue its upward trend. Holding this support could pave the way for Ethereum to build momentum and possibly achieve new all-time highs.