Ethereum (ETH), the world's second-largest cryptocurrency, has seen a strong market recovery, surging more than 5% and topping the $3,100 level. After weeks of intense selling pressure, ETH bulls are back on the offensive with the SEC's decision on spot approval of the Ethereum ETF just one week later.
Ethereum (ETH) price breakout
Ethereum (ETH) price is currently trading around $3,087. It recently broke out of a descending wedge pattern on the daily timeframe. A descending wedge pattern is usually a bullish indicator, so we can expect bullish momentum for Ethereum if the price can close above this breakout level.
However, it should be noted that Ethereum has significantly underperformed Bitcoin so far throughout this year of 2024. The ETH/BTC price ratio hit a three-year low of 0.044 on Thursday. Since the merger, the correlation between BTC and ETH has decreased by 45%, reducing the likelihood of a “reversal” occurring in the near future.
ETH could have an unexpected rise
While Ethereum remains under continued selling pressure, popular market analyst Michael Van de Poppe believes that Ethereum could be poised for a significant rally. There is. “The next few weeks are going to be big for Ethereum, and the ecosystem and market as a whole is very negative,” he wrote.
In its latest research report released last Wednesday, cryptocurrency exchange Coinbase said Ethereum could surprise investors with an upside. “Ether could see an unexpected rally in the coming months,” the report said, stressing that the cryptocurrency does not have “significant supply-side pressure” such as token unlocking or miner sales. did.
Furthermore, Coinbase believes that the importance of Ethereum ETFs should not be underestimated. “We believe the market may have underestimated the timing and likelihood of potential approval, leaving room for unexpected upside,” Coinbase said in a statement.
“Even if the initial May 23, 2024 deadline is denied, we believe that litigation will likely overturn that decision,” the memo said.
