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
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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.
