The United States Securities and Exchange Commission (SEC) approved spot Ether exchange-traded funds (ETFs) on May 23, but this did not have a significant impact on Ether’s price. Despite rallying roughly 25% the previous week, there was no sell-off following the regulatory approval, indicating that Ether bulls are not rushing to sell their holdings. Traders appear to be adopting a wait-and-watch approach.
Meanwhile, Bitcoin experienced a rally near $72,000 this week but failed to sustain the higher levels. The price dropped below the psychological level of $70,000, suggesting that the sideways price action may continue.
The positive movements in Bitcoin and Ether have triggered buying in select altcoins that show promise in the near term. If the support levels in Bitcoin and Ether are respected by the market, some altcoins could see buying support.
Now, let’s analyze the technicals to determine if further rallies can be expected in Bitcoin and Ether, as well as whether buyers will return to select altcoins. We will study the top five cryptocurrencies that appear promising on the charts.
Bitcoin’s price analysis shows that it bounced off the 20-day exponential moving average ($66,814) on May 24, indicating a positive sentiment among traders who are buying on dips. The bulls will aim to push the price to the overhead resistance of $73,777, which is expected to be defended vigorously by the bears. If the price sharply turns down from this level and falls below the moving averages, it could suggest a continuation of the range-bound action. On the other hand, if the bulls can maintain their position above $73,777, it would improve the chances of a breakout. In that case, the price could rally to $80,000 and then to $84,000.
Ether’s price analysis reveals that it surged above $3,730 on May 21, and the bulls have managed to keep the price above the breakout level since then. This indicates that the bulls are attempting to establish support at the $3,730 level. The 20-day exponential moving average ($3,452) is turning up, and the relative strength index (RSI) is in the overbought territory, signaling that the path of least resistance is to the upside. Buyers will try to push the price to the $3,950 to $4,100 zone, which is expected to be defended by sellers. If the bulls succeed in breaking this zone, the price could skyrocket to $4,868. On the other hand, if the bears push the price below $3,730, it may indicate the start of a correction. The 20-day EMA could serve as a strong support level in that case. A rebound off the 20-day EMA would give the bulls another opportunity to resume the uptrend.
Chainlink’s price analysis shows that it has been trading near the critical overhead resistance level of $17.32 for the past three days, indicating a battle between the bulls and bears. The upsloping 20-day EMA ($15.96) and RSI above 62 suggest that the bulls are in control. There is a minor resistance at $18.68, but if the bulls can overcome this hurdle, the price could rise to $20.74 and then to $22. However, if the price turns down and sustains below $17.32, it would indicate a rejection of the breakout and could lead to a drop to the 20-day EMA and then to the 50-day simple moving average (SMA) at $14.95.
Uniswap’s recovery gained momentum after the price broke above the moving averages on May 20. However, it turned down from the overhead resistance of $11.81 on May 26. If buyers can hold their ground and prevent a significant drop, it would increase the likelihood of a breakout above $11.81. In that case, the price could surge to $13.34 and then to $15. On the contrary, if the price falls below $10, it would suggest aggressive profit booking by the bulls and could delay the next leg of the uptrend. The 20-day EMA at $9.05 would serve as a strong support level in this scenario.
Arbitrum has been attempting to break above the overhead resistance of $1.27 but has faced resistance from bears. However, the bulls have managed to keep the price above the 20-day EMA at $1.11, increasing the possibility of a breakout above the resistance level. If that happens, the price could gain momentum and rise toward $1.60 and eventually $1.75. On the other hand, if the price sharply turns down and falls below $1.10, it could signal a negative trend and push the price down to the strong support near $0.90.
Please note that this article does not provide investment advice or recommendations. Investors should conduct their own research before making any decisions.