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Ethereum price surges, breaks out of falling wedge pattern

Ether's surge is driven by bullish market sentiment and the potential approval of U.S. spot Ether ETFs

Shashank Bhardwaj
Published: May 28, 2024 03:07:41 PM IST
Updated: May 28, 2024 03:12:18 PM IST

Ethereum price surges, breaks out of falling wedge patternImage: Shutterstock
 
Ethereum (ETH) has seen a significant price surge over the past week, rising more than 27% and breaking out of a falling wedge chart pattern. This breakout suggests a potential reversal from the previous downtrend and hints at the possibility of Ether reaching new all-time highs.

The falling wedge is a bullish reversal pattern when the price makes lower highs and lower lows within a converging downtrend. The breakout from this pattern indicates that selling pressure is waning, and buyers are gaining control. Additionally, Ether has flipped key resistance areas into support, providing a solid base for further gains.

The recent price surge in Ethereum has also been accompanied by a decline in Bitcoin's dominance, suggesting that traders' attention is shifting towards Ether. Bitcoin's dominance, which measures Bitcoin's market share relative to the overall cryptocurrency market, has fallen over 0.98% in the past five days, while Ethereum's dominance has risen 4.4%. Over the past 24 hours, Ethereum's dominance has increased by 1.45%, while Bitcoin's dominance has decreased by 0.57%.

Analysts are also bullish on Ethereum's potential to continue its upward trajectory, with some predicting that the cryptocurrency could reach as high as $4,500 before the launch of the first spot Ether exchange-traded funds (ETFs) in the United States.

Arthur Cheong, the founder and CEO of crypto-focused investment firm DeFiance Capital, believes that Ether could rally to the $4,500 mark before the first spot Ether ETFs start trading. In a May 26 post, Cheong tweeted on X that “4.5k before spot ETF go live for trading imo”.

The positive sentiment surrounding Ethereum's price outlook is primarily driven by the recent developments around the potential approval of spot Ether ETFs in the U.S. On May 20, Ether's price rose nearly 20% within a day, following reports that the U.S. Securities and Exchange Commission (SEC) has U-turned on spot Ether ETFs, possibly due to political pressure.

As of May 28, Ethereum (ETH) is trading at approximately $3,800, with a market capitalisation of USD 463.51 billion.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist.
Twitter: @bhardwajshash