Ether’s price is poised for a potential breakout, according to an analysis of its technical chart formation. Over the past week, Ether has experienced a significant 27% increase in price, surpassing key resistance levels and indicating a potential reversal from its previous downward trend. This breakout suggests that Ether may rally to new all-time highs.
The rising dominance of Ether compared to Bitcoin further supports the hypothesis of a breakout. The ETH/BTC pair has seen a bounce in recent days, while Bitcoin’s dominance has decreased by 0.98% over the past five days. In the last 24 hours, Ether’s dominance has increased by 1.45%, while Bitcoin’s dominance has fallen by 0.57%.
The current rally in Ether’s price can be attributed to positive developments surrounding the introduction of spot Ether exchange-traded funds (ETFs). Reports of the US Securities and Exchange Commission (SEC) reversing its stance on spot Ether ETFs, possibly due to political pressure, have fueled investor sentiment. Analysts predict that Ether’s price could reach the $4,500 mark before the launch of the first spot Ether ETFs.
However, Ether faces significant resistance at the psychological mark of $4,000. Breaking above this level would result in the liquidation of over $433 million worth of leveraged short positions across all exchanges. To confirm sustained bullish momentum, Ether’s price needs to close the week above the $3,956 mark.
It’s important to note that this article does not provide investment advice or recommendations. Investors should conduct their own research and analysis before making any investment decisions.