Ethereum (ETH) saw a major upswing at the top of May as a result of the rumors of a spot ETH ETF (Exchange-Traded Funds) approval within the US. This bullish momentum propelled the token’s price from the $3,000 price range to the $3,900 mark.
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After the approval, the second-largest cryptocurrency has shown a powerful performance, consolidating between the $3,700 and $3,800 levels. Some crypto analysts imagine ETH is preparing for an important test and eye bullish targets above the $10,000 price range soon.
ETH’s “Glorious 12 months” Depends On This Level
In response to crypto analyst Jelle, a community sector is currently driven by a negative sentiment towards Ethereum. The bearish sentiment, seemingly fueled by Ethereum’s failure to regain the $4,000 resistance level, has made “a number of people overcomplicate things here.”
Because of this, Jelle urged investors to not panic, arguing there’s no reason to “flip bearish.” The crypto analyst highlighted the important thing movements the King of Altcoins has seen up to now two weeks.
Because of the spot ETH ETF approval, Ethereum broke out of a multi-moth falling wedge pattern. On the time, ETH successfully regained the $3,600 price range and briefly tested the $3,900 price range.
ETH breaks out of a multi-month falling wedge pattern. Source: CryptoJelle on X
After reclaiming this key support level, ETH has been consolidating above it, hovering between the $3,700 and $3,800 price range since May 28. In response to the analyst, the cryptocurrency is “reclaiming the range lows of a 3-year-long reaccumulation range.”
Per Jelle’s chart, ETH is regaining the bottom range of the previous bull run, which could lead on to an expansion period. If the second-largest cryptocurrency by market capitalization holds above this key level, Ethereum “can have a wonderful 12 months.”
Moreover, the analyst considers that ETH’s last hurdle to beat this cycle is the $4,000 resistance level. Once “it breaks $4,000, it’s clear skies ahead” to potentially reach the value goal of $10,000.
Similarly, known crypto analyst Il Capo of Crypto noted that his major scenario is a bullish continuation. Per Il Capo, Ethereum is “looking good” above the $3,650 range. This performance seemingly sets the cryptocurrency for a “bullish continuation” towards the previous cycle’s all-time high (ATH).
Ethereum ETFs, The Catalyst For Latest ATH?
Despite the doubts, Ethereum’s recent performance resembles Bitcoin’s (BTC) in previous cycles. In response to crypto trader Ash, ETH is following the trail of the flagship cryptocurrency in 2018-2021. If it continues this track, “$10,000+ ETH is programmed.”
Because the crypto market awaits the listing of the spot ETF, some analysts consider it the catalyst for an “explosive” alt season this 12 months.
Similarly, Ali Martinez noted that over 777,000 ETH, value around $3 billion, have been withdrawn from exchanges for the reason that US Securities and Exchange Commission (SEC) approved the investment products. Because of a supply squeeze, this development could propel ETH’s price to higher levels.
Nevertheless, Lookonchain recently revealed that two participants of Ethereum’s Initial Coin Offering (ICO) deposited around 4.5% of their holdings on a crypto exchange. Per the post, the ICO participants received 200,000 ETH, value around $767 million, at Ethereum’s Genesis.
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The holders deposited 9,518 ETH, or $36.33 million, into Kraken on Monday, which has alarmed investors. Despite the fear of a possible dump, some community members think this movement could suggest that these long-term holders imagine ETH’s price will reach unprecedented highs soon.
ETH is trading at $3,761 within the biweekly chart. Source: ETHUSDT on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com