Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has recently shown some promising signs that suggest a potential rebound in its price. Analysts have been closely monitoring various technical indicators, and one analyst, Ali, has highlighted a key signal that points towards an impending price surge. According to Ali’s analysis on social media platform X, the TD Sequential indicator on Ethereum’s daily chart has issued a strong buy signal, indicating a possible upward movement lasting one to four candlesticks.
This positive outlook is supported by Ethereum’s recent performance, which saw the asset increase by 2.3% over the last 24 hours. However, Ethereum still remains below the critical $3,000 mark. Despite the optimistic technical signals, external factors such as regulatory challenges could influence Ethereum’s trajectory.
One of the potential challenges facing Ethereum is the regulatory landscape. The SEC’s view of ETH as a security could significantly lower the chances of ETF approval. Analysts like Eric Balchunas of Bloomberg suggest that the potential decline of the spot Ethereum ETF application with the US Securities and Exchange Commission (SEC) is a concern. The SEC has asked commenters about the Eth spot ETFs and whether these filers have properly filed their ETF listing proposals as commodities. This indicates that the SEC may be considering classifying Ethereum as a security in their denial, which could impact the approval odds of the ETF.
Despite the regulatory challenges, market sentiment around Ethereum remains largely bullish. The options market, in particular, shows a clear preference for calls over puts, indicating that traders are betting on Ethereum’s price increase. Data from Deribit, a leading crypto options exchange, shows that the most popular strike price among these bullish bets is an ambitious $6,500. This concentration of call options, especially those above the $3,600 mark, suggests that a significant portion of the market expects Ethereum to reach higher levels by the end of June.
In contrast, a recent NBTC analysis suggests that Ethereum’s failure to breach the $2,925 resistance level could trigger another price decline. Initial support is located near the $2,880 level, followed by major support at the $2,860 zone. If Ethereum breaks below $2,810, it could potentially fall towards the $2,740 mark, and further losses might push the price down to $2,650 in the near term.
Overall, while the technical indicators point towards a potential rebound in Ethereum’s price, external factors such as regulatory challenges could pose significant hurdles for the cryptocurrency. It is essential for investors to carefully consider both the market signals and external factors when making decisions regarding Ethereum and its future performance.
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