Ethereum (ETH) saw a significant upswing at the end of May due to the rumors of a spot ETH ETF (Exchange-Traded Funds) approval in the US. This bullish momentum propelled the token’s price from the $3,000 price range to the $3,900 mark.
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After the approval, the second-largest cryptocurrency has shown a strong performance, consolidating between the $3,700 and $3,800 levels. Some crypto analysts believe ETH is preparing for a crucial test and eye bullish targets above the $10,000 price range soon.
ETH’s “Glorious Year” Depends On This Level
According to crypto analyst Jelle, a community sector is currently driven by a negative sentiment towards Ethereum. The bearish sentiment, seemingly fueled by Ethereum’s failure to regain the $4,000 resistance level, has made “lots of people overcomplicate things here.”
As a result, Jelle urged investors not to panic, arguing there’s no reason to “flip bearish.” The crypto analyst highlighted the key movements the King of Altcoins has seen in the past two weeks.
Due to the spot ETH ETF approval, Ethereum broke out of a multi-moth falling wedge pattern. At the time, ETH successfully regained the $3,600 price range and briefly tested the $3,900 price range.
After reclaiming this key support level, ETH has been consolidating above it, hovering between the $3,700 and $3,800 price range since May 28. According to the analyst, the cryptocurrency is “reclaiming the range lows of a 3-year-long reaccumulation range.”
Per Jelle’s chart, ETH is regaining the lowest range of the previous bull run, which could lead to an expansion period. If the second-largest cryptocurrency by market capitalization holds above this key level, Ethereum “will have a glorious year.”
Additionally, the analyst considers that ETH’s last hurdle to overcome this cycle is the $4,000 resistance level. Once “it breaks $4,000, it’s clear skies ahead” to potentially reach the price target of $10,000.
Similarly, known crypto analyst Il Capo of Crypto noted that his main scenario is a bullish continuation. Per Il Capo, Ethereum is “looking good” above the $3,650 range. This performance seemingly sets the cryptocurrency for a “bullish continuation” towards the previous cycle’s all-time high (ATH).
Ethereum ETFs, The Catalyst For New ATH?
Despite the doubts, Ethereum’s recent performance resembles Bitcoin’s (BTC) in previous cycles. According to crypto trader Ash, ETH is following the path of the flagship cryptocurrency in 2018-2021. If it continues this track, “$10,000+ ETH is programmed.”
As the crypto market awaits the listing of the spot ETF, some analysts consider it the catalyst for an “explosive” alt season this year.
Similarly, Ali Martinez noted that over 777,000 ETH, worth around $3 billion, have been withdrawn from exchanges since the US Securities and Exchange Commission (SEC) approved the investment products. Due to a supply squeeze, this development could propel ETH’s price to higher levels.
However, Lookonchain recently revealed that two participants of Ethereum’s Initial Coin Offering (ICO) deposited around 4.5% of their holdings on a crypto exchange. Per the post, the ICO participants received 200,000 ETH, worth around $767 million, at Ethereum’s Genesis.
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The holders deposited 9,518 ETH, or $36.33 million, into Kraken on Monday, which has alarmed investors. Despite the fear of a possible dump, some community members think this movement could suggest that these long-term holders believe ETH’s price will reach unprecedented highs soon.
Featured Image from Unsplash.com, Chart from TradingView.com
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