Ethereum Bulls Set to Surge? Key Indicator Points to Upturn
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, appears to be indicating signs of a potential rebound in the near future. One analyst, Ali, has identified a crucial signal that suggests a forthcoming price surge.
Despite this positive technical outlook, Ethereum still remains below the critical $3,000 level. It is important to consider external factors, particularly regulatory challenges, which could influence the trajectory of Ethereum’s price.
Of concern is the potential rejection of the spot Ethereum ETF application by the US Securities and Exchange Commission (SEC). Analysts like Eric Balchunas of Bloomberg believe that if the SEC views ETH as a security, it could significantly reduce the chances of ETF approval.
However, despite these challenges, market sentiment surrounding Ethereum remains largely bullish. The options market, in particular, reveals a clear preference for calls over puts, indicating that traders are betting on Ethereum’s price increase.
Data from the leading crypto options exchange, Deribit, shows that the most popular strike price among these bullish bets is an ambitious $6,500. This concentration of call options, especially above the $3,600 level, suggests a widespread expectation that Ethereum will reach higher levels by the end of June.
On the other hand, failure to breach the $2,925 resistance level could trigger another price decline for Ethereum. Initial support is expected around the $2,880 level, followed by significant support at the $2,860 zone. In the event that Ethereum falls below $2,810, it could potentially drop further towards the $2,740 mark, with additional losses driving the price down to $2,650 in the short term.
It is important to consider all these factors when assessing the potential of Ethereum’s price movement.