Ethereum is shining brightly: Crypto analysis of May 21, 2024

While Ethereum seemed on the brink of oblivion, its price rebounded by nearly 20%. Let’s examine the future prospects for ETH together.

Ethereum (ETH) Price Situation

After facing downward pressure that pushed it down to $2,900, the Ethereum price stabilized at this price level. It took waiting until the week of the final deadline for the approval of Ethereum spot ETFs  by VanEck, 21Shares & ARK, for the cryptocurrency’s volatility to increase. Fortunately for Ethereum, expectations that became more optimistic on Monday, May 20, allowed the cryptocurrency to appreciate by over 20%. Thus, Ethereum reached a resistance level of $3,700, as noted in the analysis of May 9, 2024.

At the time of writing this article, one Ether is worth $3,650. It seems that the cryptocurrency is now stabilizing below its resistance level. These recent bullish fluctuations have allowed ETH to position itself again above its 50-day moving average, which could reassure investors about the cryptocurrency’s trend. On the side of Ethereum’s momentum, a notable recovery can be observed, as evidenced by the oscillators and the price of Ethereum itself. All these elements thus seem encouraging for the continuation of this movement.

The current technical analysis was conducted in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Today, he is a trainer at Family Trading, a community of thousands of proprietary traders active since 2017. There you will find Lives, educational content, and mutual support around financial markets in a professional and warm atmosphere.

Hypotheses for Ethereum (ETH) Price

• If the Ethereum price remains above $3,400, we could anticipate a breakthrough of $3,700. The next resistance to consider would be $3,900, or even $4,100. If the bullish movement continues, a new high at $4,400 could be marked. If Ethereum’s momentum accelerates, it would not be impossible for Ethereum to reach its all-time high around $4,800. At this stage, it would represent an increase of over 31%.

• If the Ethereum price fails to stay above $3,400, a return around $3,100 could be considered. The next support to consider, if the bearish movement continues, would be in a price range around $3,050. At this stage, it would represent a decrease close to -17%.

Conclusion

Following a period of decline, Ethereum has experienced a remarkable recovery, supported by optimistic expectations related to the approval of Ethereum spot ETFs. This positive momentum, illustrated by reaching a key resistance level and a regain of confidence among investors, 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 enthusiasm for the cryptocurrency. Thus, it will be crucial to closely observe the price reaction to different key levels to confirm or refute the current hypotheses. It is also important to remain vigilant in the face of potential “fake outs” and market “squeezes” in each scenario. Finally, let us remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also evolve rapidly based on other more fundamental factors.