Several exchange-traded funds (ETFs) for Ether (ETH) were given the green light by the United States Securities and Exchange Commission (SEC) on May 23. However, the approval did not have a significant impact on the price of Ether or the overall cryptocurrency market. This raises the question of whether the ETF decision was already priced in. A similar dip in Bitcoin’s (BTC) price occurred after the approval of spot Bitcoin ETFs, but it quickly turned around and reached a new all-time high a few days later.
According to Bloomberg ETF analyst Eric Balchunas, the approved Ether ETFs are expected to launch by mid-June. Balchunas predicts that the Ether ETFs will attract approximately 10-15% of the inflows seen by Bitcoin ETFs. Once money starts flowing into the Ether ETFs, it is likely to have a positive impact on the spot market.
While Bitcoin remains in a sideways price action, Tom Lee, the managing partner and head of research at Fundstrat Global Advisors, remains optimistic. In an interview with CNBC, Lee stated that their base case for Bitcoin by the end of the year is $150,000.
Now, let’s analyze the charts of the top 10 cryptocurrencies to see if Bitcoin and select altcoins can rebound from their immediate support levels.
Bitcoin’s price reversed direction from $71,979 on May 21 and is currently hovering around the moving averages. This indicates that the bears are trying to keep the price within a range. If the price bounces off the moving averages with strength, the bulls will attempt to push the BTC/USDT pair to the overhead resistance at $73,777. A break and close above this level could pave the way for a rally to $80,000 and then $84,000. On the other hand, if the price breaks below the moving averages, it would suggest that the bulls have given up and the pair may drop to the strong support at $59,600.
Ether’s price on May 23 showed a struggle between buyers and sellers, as indicated by the long wick and long tail on the candlestick. The price dipped below the important level of $3,730, which the bulls need to defend. If the price remains below $3,730, the ETH/USDT pair could decline to the 20-day EMA ($3,313). However, a strong bounce off this level would suggest that the bulls continue to buy on dips, and they will make another attempt to overcome the obstacle at $3,730. The bears are expected to put up a strong defense between $3,730 and $4,100, as a breakthrough could lead to a surge to $4,868.
BNB turned down from the resistance level of $635 on May 21, indicating that the bears are aggressively defending that level. The BNB/USDT pair has reached the moving averages, which is an important support to watch. A strong bounce off the moving averages would signal that the bulls are buying on minor dips and improve the chances of a break above $635. This would pave the way for a rally toward $692. However, if the price breaks below the moving averages and the $560 support, it would suggest that the pair may remain within the range.
Solana turned down from $189 on May 21, indicating selling pressure from bears. The bulls bought the dip near the breakout level of $162 on May 23, but they haven’t been able to build upon it. Sellers are attempting to push the price below $162, and if they succeed, the SOL/USDT pair may drop to $140. On the other hand, if the price rebounds off $162, it would suggest that the bulls are trying to flip the level into support. To start a rally to $205, buyers will have to overcome the barrier at $189, where the bears may pose a strong challenge.
XRP has been experiencing volatile moves near the moving averages, indicating a tough battle between the bulls and the bears. The bears will try to pull the price below the moving averages and the support line. If they succeed, the XRP/USDT pair could drop to the crucial support at $0.46, which is expected to attract strong buying from the bulls. A strong rebound off $0.46 could extend the consolidation phase. To signal that the bears are losing their grip, buyers will have to clear the overhead hurdle at $0.57, leading to a rally to $0.67 and eventually $0.74.
Dogecoin has been stuck between the 50-day SMA ($0.16) and the overhead resistance at $0.17 for the past three days. The bulls managed to hold their ground when the bears attempted to pull the price below the moving averages on May 23. The bulls are now trying to propel the DOGE/USDT pair above $0.17, which could initiate an upward move to $0.21. Conversely, if the price breaks below the moving averages and the $0.16 support, the pair may slide to $0.13, suggesting a continued consolidation within the $0.12 to $0.17 range.
Toncoin bulls are struggling to start a bounce off the moving averages, indicating that the bears are maintaining their pressure. If the price slips and remains below the 50-day SMA ($6.12), it would suggest a downward journey to $5.57 and later to $4.72. Buyers are expected to fiercely defend the $4.72 level, keeping the price range-bound between $4.72 and $7.67 for a few more days. The next trending move is expected to occur on a break above $7.67 or a drop below $4.72, while random and volatile price action is likely to continue until then.
Cardano’s price action has formed a symmetrical triangle pattern, indicating indecision between the bulls and the bears. The flattish 20-day EMA ($0.47) and the RSI just below the midpoint suggest that the ADA/USDT pair may remain within the triangle for some time. If the price remains below the 20-day EMA, the bears will attempt to push the pair below the triangle, leading to a dive to the next support at $0.35. However, if the price turns up from the current level, the bulls will try to drive the pair above the resistance line. A successful breakout could result in a rally to $0.57 and then $0.62.
Avalanche turned down and fell below the breakout level of $40 on May 23, indicating that bears are still active at higher levels. However, the bulls have managed to prevent the price from slipping below the moving averages. If the price turns up from the current level and breaks above $42, it would suggest a change in sentiment from selling on rallies to buying on dips. This could lead to a surge to $50. On the other hand, if the price breaks below the moving averages, selling pressure could increase, and the pair may drop to $34 and then $29.
Shiba Inu re-entered the symmetrical triangle pattern on May 23, indicating a lack of demand at higher levels. The moving averages are flat, and the RSI is near the midpoint, which does not give a clear advantage to either the bulls or the bears. The sellers will have to push the price below the support line to gain the upper hand. If they succeed, the SHIB/USDT pair could move down to the 78.6% retracement level of $0.000017. On the upside, the bulls will have to drive the price above $0.000027 to clear the path for a rally to the $0.000030 to $0.000033 resistance zone.
It’s important to note that this article does not provide investment advice or recommendations. Every investment and trading decision carries risks, and readers should conduct their own research before making any decisions.