Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has been showing signs of a potential rebound, according to analysts. One analyst, Ali, has pointed out a key signal on Ethereum’s daily chart that suggests a forthcoming price surge. The TD Sequential indicator has issued a strong buy signal, indicating a potential upward movement lasting one to four candlesticks. This positive technical analysis has been well received by the crypto community.
Despite the optimistic technical signals, external factors such as regulatory challenges could influence Ethereum’s trajectory. One major concern is the potential decline of the spot Ethereum ETF application with the US Securities and Exchange Commission (SEC). Analysts, including Eric Balchunas of Bloomberg, have suggested that the SEC’s view of ETH as a security could significantly lower the chances of ETF approval. This regulatory uncertainty poses a threat to Ethereum’s potential price increase.
Market Sentiment and Options Analysis
Market sentiment around Ethereum remains largely bullish, as shown by the preferences in the options market. Traders are leaning towards calls over puts, indicating a bet on Ethereum’s price increase. Data from Deribit, a leading crypto options exchange, reveals that the most popular strike price among these bullish bets is $6,500. This concentration of call options above the $3,600 mark suggests that the market expects Ethereum to reach higher levels by the end of June.
According to a recent NBTC analysis, Ethereum’s failure to breach the $2,925 resistance level could trigger another price decline. Initial support is found near the $2,880 level, followed by major support at the $2,860 zone. If Ethereum breaks below $2,810, it could potentially fall towards the $2,740 mark. Further losses might push the price down to $2,650 in the near term.
While Ethereum shows signs of a potential rebound based on technical analysis, regulatory challenges and market sentiment could impact its price trajectory. Traders and investors should monitor key levels and indicators to make informed decisions regarding Ethereum’s future price movements.