Traders are continuing to drive up the price of Ether (ETH), bringing it closer to $4,000 on May 27. The altcoin saw a 3.5% gain for the day, according to data from Cointelegraph Markets Pro and TradingView. Ether started at a low of $3,048 on May 20 and climbed 27% in just one week to reach a 10-week high of $3,964 on May 27.
The recent surge in Ether’s price can be attributed to the anticipation of the approval of spot Ethereum exchange-traded funds (ETFs) in the United States. Despite a lackluster performance after the approval, the move towards $4,000 is seen as a significant milestone. Crypto analyst Jelle believes that Ether has completed a long period of accumulation and with the approval of spot Ethereum ETFs, the price is now ready to enter the “stratosphere.”
Analyst and founder of MN Capital, Michaël van de Poppe, also observed a bullish trend for Ether. Using a weekly ETH/BTC chart, he noted a bullish divergence in the weekly relative strength index (RSI), indicating a shift of capital from Bitcoin to altcoins after a prolonged crypto winter.
Crypto trader Matthew Hyland declared that Ether has confirmed a bullish divergence and a break of the downtrend, adding that an increase in trading volume would further validate the breakout. However, analyst Tuur Demeester believes that the Ethereum market euphoria has yet to materialize, stating that the ETH/BTC pair needs to breach 0.06 to turn bullish.
It is important to note that the ETH/BTC pair was trading at 0.056 at the time of publication, with the 50-week simple moving average (SMA) providing immediate support. Holding this support is crucial to increase the chances of flipping the long-term descending trendline (blue) into support. If successful, ETH/BTC will face resistance at the 0.06 level embraced by the 200-week SMA. Breaking this level is not a guarantee of success as the pair will still need to flip the 100-week SMA at 0.063 to confirm the breakout.
Additionally, data from CryptoQuant shows that the balance of ETH on exchanges has been decreasing over the past year, reaching a six-year low of 13.58 million ETH on May 20. This decrease in Ether balance on exchanges indicates that traders are adopting long-term investment strategies and have increased confidence in the long-term potential and value of Ether.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.