Ethereum
Ethereum at $4,900? — TradingView News
After a crucial week for Ethereum, a technical candlestick pattern shows that ETH prices could be gearing up for a strong rally in the coming weeks and months.
Highlighting the events in the monthly chart, one analyst notes that the ETH/BTC ratio is reversing from a multi-year support trendline. Usually, the analyst continued, when prices bounce from this line, altcoin prices tend to react, trending higher.
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ETH/BTC Breaks From Crucial Support Trendline
ETH/BTC is a ratio closely watched by technical analysts. It compares the performance of the world’s first and second most valuable coins.
Although Bitcoin has been firm for most of the past two years, the monthly chart clearly shows a descending channel, indicating an upward trend.
So far, there have been a series of higher lows. This suggests that the bulls have experienced selling pressure over the years, keeping prices higher.
Looking at the monthly chart, this month’s bar will close firmly and higher. This will result in a double-bar bullish reversal pattern that could ignite demand.
This will subsequently help drive ETH prices even higher. Nonetheless, the relatively lower trading volume than observed in July 2022 suggests that participation has not reached historically high levels.
A bullish bar in June confirming this month’s gain could be the basis for a further rise. If this happens, it will mirror those of January 2021. Another 40% gain against Bitcoin could see ETH close above 0.08 BTC, propelling the coin closely towards 2017 highs. www.tradingview.com/x/b4az0D3G
Overall, Bitcoin has been firm. Since September 2022, BTC has outperformed ETH, erasing gains from 2020 and 2021. The result has been a descending channel, although this phase of lower levels has also had relatively low participation levels.
Technically, based on volume analysis, this is bullish for ETH. Nonetheless, a close above 0.08 BTC would be a strong testament from the bulls. This could potentially lay the groundwork to glue ETH together, further reducing BTC’s dominance.
Spot Ethereum ETFs to Drive Demand: Path to $4,900?
Over the years since the launch and final approval of Bitcoin spot exchange-traded funds (ETFs) in January, the digital asset was the only one recognized by the United States Securities and Exchange Commission (SEC).
Due to this advantage, the approval of the derivative product made BTC the must-have asset of an institution. Wall Street players like Fidelity and BlackRock have enabled exposure to BTC via spot ETFs over the past four months, pumping billions into the asset.
However, this changed last week when the US SEC approved the listing of all Ethereum spot ETFs. ETH staking has been removed from modified 19b-4 files.
Still, the fact that Ethereum is almost cleared represents a huge boost for the network and the platform. In response, ETH prices soared by as much as 30%, outperforming Bitcoin.
It is highly likely that ETH prices will continue to rise in the coming weeks. While it remains to be seen what the reception will be, especially among investors, the coin, like BTC prices after mid-January 2024, will rebound, perhaps surpassing $4,100 and even all-time highs of 2021.