Ethereum
Ethereum (ETH) Price Jumps 5%, This Breakout May Trigger a Bull Run
Ethereum (ETH), the world’s second-largest cryptocurrency, is seeing a strong rally in the market, jumping over 5% and surpassing $3,100 levels. After facing heavy selling pressure for a few weeks, ETH bulls are regaining the upper hand with the SEC’s decision on the one-time approval of the Ethereum ETF just a week away.
Ethereum (ETH) Price Breakdown
Ethereum (ETH) Price is currently trading around $3,087. It recently broke out of a descending wedge trend on the daily time frame. If the price manages to close above this breakout level, we can expect bullish momentum for Ethereum, as the falling wedge pattern is generally a bullish indicator.
However, it should be noted that Ethereum has suffered severely Bitcoin underperformed throughout this year in 2024 until now. The ETH/BTC price ratio hit a three-year low at 0.044 on Thursday. Since the merger, the correlation between BTC and ETH has decreased by 45%, reducing the likelihood of the “reversal” occurring in the near future.
ETH can surprise on the rise
As Ethereum continues to see constant selling pressure, popular market analyst Michael van de Poppe believes that ETH could be gearing up for a big rally. He wrote: “The coming weeks are going to be big for Ethereum and the entire ecosystem and markets are super negative.”
In its latest research report published last Wednesday, crypto exchange Coinbase stated that Ethereum could surprise investors on the rise. Ether could potentially experience an upside surprise in the coming months,” the report said, noting that the cryptocurrency lacks “significant supply-side pressures” such as token unlocks or miner sales.
Furthermore, Coinbase believes that the importance of the Ethereum spot ETF should not be underestimated. “We believe the market may be underestimating the timing and likelihood of potential approval, leaving room for upside surprises,” Coinbase said.
“Even if the earlier deadline of May 23, 2024 is rejected, we believe there is a high likelihood that litigation could overturn this decision,” the memo said.