Ethereum
Ethereum (ETH) gearing up for a ‘glorious year’, analyst targets $10,000 target
Ethereum (ETH) saw a significant rise in late May due to rumors of a one-time approval of ETH ETFs (Exchange-Traded Funds) in the United States. This bullish momentum propelled the token’s price from the $3,000 price range to the $3,900 mark.
Following the approval, the second-largest cryptocurrency showed a strong performance, consolidating between the $3,700 and $3,800 levels. Some crypto analysts believe ETH is preparing for a crucial test and are eyeing bullish targets above the $10,000 price range soon.
ETH’s “glorious year” hinges on this level
According to crypto analyst Jelle, the community sector is currently driven by negative sentiment towards Ethereum. The bearish sentiment, seemingly fueled by Ethereum’s inability to regain the $4,000 resistance level, has led “a lot of people to complicate things here.”
As a result, Jelle urged investors not to panic, saying there was no reason to “go bearish.” The crypto analyst highlighted key moves that the king of Altcoins has seen over the past two weeks.
Due to the one-time approval of the ETH ETF, Ethereum exploded from a falling wedge pattern to several butterflies. At the time, ETH managed to regain the $3,600 price range and briefly test the $3,900 price range.
After reclaiming this key support level, ETH has consolidated above it, oscillating between the $3,700 and $3,800 price range since May 28. According to the analyst, the cryptocurrency is “recovering the lows of a three-year reaccumulation range.”
By Jelle chart, ETH returns to the lowest range of the previous bull run, which could lead to a period of expansion. If the second-largest cryptocurrency by market capitalization stays above this key level, Ethereum will “have a glorious year.”
Additionally, the analyst considers the last hurdle for ETH to overcome this cycle to be the $4,000 resistance level. Once “it gets above $4,000, the sky is clear” to potentially hit the $10,000 price target.
Likewise, known crypto analyst Il Capo de Crypto note that its main scenario is a bullish continuation. According to Il Capo, Ethereum “looks good” above the $3,650 range. This performance appears to place the cryptocurrency on a “bullish continuation” towards the all-time high (ATH) of the previous cycle.
Ethereum ETFs, the catalyst for the new ATH?
Despite the doubts, Ethereum’s recent performance resembles that of Bitcoin (BTC) in previous cycles. According to crypto trader Ash, ETH is following the path to the flagship cryptocurrency in 2018-2021. If he continues on this path, “$10,000+ ETH is scheduled.”
As the crypto market awaits the listing of the spot ETF, some analysts see it as the catalyst for an “explosive” alternative season this year.
Likewise, Ali Martinez note that more than 777,000 ETH, worth approximately $3 billion, has been withdrawn from exchanges since the U.S. Securities and Exchange Commission (SEC) approved the investment products. Due to a supply squeeze, this development could propel the price of ETH to higher levels.
However, Lookonchain recently revealed that two participants in the Ethereum initial coin offering (ICO) deposited approximately 4.5% of their holdings on a crypto exchange. According to the post, ICO participants received 200,000 ETH, worth approximately $767 million, at Ethereum’s Genesis.
Holders deposited 9,518 ETH, or $36.33 million, into Kraken on Monday, alarming investors. Despite the fear of a possible dump, some members of the community believe that this movement could suggest that these long-term holders I believe the price of ETH will reach all-time highs soon.
Featured image from Unsplash.com, chart from TradingView.com