Key Technical Indicator Predicts Ethereum ($ETH) Price Could Surpass $5,400 This Year
Technical analysis indicates that Ethereum ($ETH), the second-largest cryptocurrency in terms of market capitalization, may experience a price increase above $5,400 in the coming year. The analysis is based on the Mayer Multiple oscillator, which calculates the ratio between price and the 200-day moving average. This suggests that Ethereum has the potential to reach the upper band of the indicator.
Currently, Ethereum is trading at $3,300, having experienced a decline of over 10% in the past week due to a broader market downturn that saw Bitcoin fall from its all-time high of $73,400 to approximately $62,800. Despite this recent drop, the Mayer Multiple oscillator suggests a positive outlook for Ethereum.
However, Ethereum’s value has faced challenges recently as the U.S. Securities and Exchange Commission (SEC) reportedly launched an investigation to determine whether it should be classified as a security. This uncertainty has cast doubt on the approval of spot Ethereum exchange-traded funds in the near future. The SEC’s probe involves subpoenas issued to various companies requesting documents and financial records regarding their involvement with the Ethereum Foundation, the non-profit organization responsible for the blockchain’s governance.
Coinbase’s Chief Legal Officer Paul Grewal has strongly criticized the SEC’s investigation, asserting that Ethereum’s status as a non-security is well-established. Grewal emphasized the significant number of Americans who hold ETH and pointed out that senior SEC officials, such as Director of Corporation Finance William Hinman, have previously acknowledged that Ethereum is not a security. He also referenced SEC Chair Gary Gensler’s past classification of ETH as a commodity rather than a security during congressional testimony.
Despite the regulatory challenges and market fluctuations, the technical analysis indicates a positive outlook for Ethereum, suggesting a potential price increase above $5,400 in the coming year.