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Author: Ciaran Lyons, CoinTelegraph; Compiled by: Deng Tong, Bitchain Vision
A cryptocurrency trader said Ethereum could soar if three long-term indicators continue to be good, retesting the $5,000 price mark that fell below in 2021.
Blockchain Mane, anonymous cryptocurrency trader, noted: “The dominant chart shows thatWe are entering the ‘Ethereum season’, which may outperform other cryptocurrencies.”
Earlier, the U.S. Securities and Exchange Commission (SEC) initially approved eight spot Ethereum Exchange-traded funds (ETFs) on May 23.
TradingView data display,ETH’s dominance, i.e. its share in the cryptocurrency market, has jumped 19.56% in the past seven days after reports that the SEC is changing its tough stance on ETF approval.
Ethereum’s dominance has risen by 18.45% over the past seven days.Source: TradingView
Blockchain Mane noted,Another key long-term indicator, the Fibonacci pullback, showed “strong support.”This indicator predicts the price level that Ethereum may rebound to based on mathematical patterns calculated by Fibonacci sequences.
Blockchain Mane said ETH showed “resistance targets at $5080.60 and $6231.83.”According to CoinMarketCap , the price has never approached an exorbitant high since hitting an all-time high of $4,878 in November 2021.
As of the time of this article, Ethereum was trading at $3,802.
Parabola and Fibonacci retracement indicators.Source: Blockchain Mane
Blockchain Mane pointed outThe third indicator is parabola, it discovers potential trend changes by being above or below Ethereum price movements.
Mane said ETH follows a “bulking trend” along the curve, with three obvious stages: foundation one, foundation two and foundation three.
“The parabola indicates continuous upward movement, especially after a downward wedge breakout,” they said.
Other cryptocurrency traders have been paying attention to the short-term price trends of spot Ethereum ETFs.
Cryptocurrency commentator Benjamin Cowen said in a May 23 post:“ETH’s gains this week are higher than the S&P 500’s gains in one year.”
Cryptocurrency trader Matthew Hyland believes thatFor Ethereum, it is crucial to “hold” the support level around $3,800 to maintain it.”
Source: Matthew Hyland
After the ETF was approved, Ethereum’s price has barely changed, probably because it has been priced and ETF trading has not yet begun.
