Ethereum Defends $3,800 as Investors Await Key US Economic Data
- The SEC’s approval of Ethereum ETFs has caused significant price fluctuations, with Ethereum stabilizing around $3,800.
- Analysts predict a potential rally, with some expecting Ethereum to reach up to $20,000 due to increased institutional interest.
The recent approval of Ethereum Exchange-Traded Funds (ETFs) by the US Securities and Exchange Commission (SEC) has injected fresh volatility into the cryptocurrency market. Following the greenlight on May 24, Ethereum’s price experienced significant fluctuations, ranging from $3,650 to $3,950, before stabilizing at approximately $3,800.
Market Analysts Anticipate Price Movements
Prominent market analyst Jelle observed that Ethereum is consolidating above a key support level of around $3,750. Jelle expects the market to fluctuate around this area in the short term, predicting a potential rally above $4,500 in the coming months. The analyst advised investors to remain patient during this period of consolidation.
$ETH is still consolidating above the key support area.
As shared earlier — expecting the market to chop around this area for a while, at least until Monday.
Don’t fall for the boredom shakeout. pic.twitter.com/toMqjljfGd
— Jelle (@CryptoJelleNL) May 31, 2024
Yoddha and Satoshi Flipper also expressed optimism about Ethereum’s future. Yoddha suggested that Ethereum is on the cusp of a new bull cycle, which could drive its price to $20,000. Satoshi Flipper echoed this sentiment, citing the likely entry of major global banks and financial institutions into the Ethereum ecosystem following the SEC’s approval of ETFs. This institutional interest could significantly bolster Ethereum’s valuation.
BULLISH AF $ETH
All of the major world banks and financial instituations will now starting buying $ETH in a FRENZY after the SEC blessed the ETF applications and approved the ETF.
The race is now on for $ETH
https://t.co/rd5XaENl0E
— Satoshi Flipper (@SatoshiFlipper) May 31, 2024
Popular Crypto analyst Javon Marks has recently given a detailed outlook on Ethereum’s market and predicted that the price could skyrocket. Marks pointed out that there was a Hidden Bullish pattern on Ethereum’s chart, which is a pattern that can signal an increase in price even if it is not as evident in the market. Similarly, the upward trend of Ethereum also had a brief period of continuation which Marks referred to as “minuscule.”
$ETH (Ethereum), after previously confirming a Hidden Bull, entered a brief and “minuscule” continuation before pulling back again.
During this pull-back, ETH went on to set up in an even larger Bull Pattern, which can result in an even larger continuation towards the $4,811.9… https://t.co/vgEAxCZ96y pic.twitter.com/WK9ByNli9j
— JAVON
MARKS (@JavonTM1) Nevertheless, the price action that followed created a more significant Bullish Pattern during a pullback. This new pattern is significant and opens a possibility of a sharp rise in continuation. As stated by Marks, this new Bullish Pattern can push the price of Ethereum to $4,811 based on past price movements and potential price trends.
Institutional Interest and On-Chain Metrics
Institutional interest in Ethereum has been growing, as evidenced by Singapore’s DBS Bank’s substantial holdings. DBS Bank, one of Singapore’s largest financial institutions, holds 173,753 ETH, valued at nearly $670 million.
Ethereum’s price has surged by over 100% in the past year, supported by strong on-chain metrics. One crucial indicator is the total value locked (TVL) in Ethereum-based decentralized finance (DeFi) protocols. According to DefiLlama, the TVL on Ethereum has risen significantly since October 2023, reaching nearly $65 billion. This increase reflects more capital flowing into the ecosystem, suggesting positive market sentiment.
Another bullish metric is the Ethereum exchange netflow, which has been predominantly negative over the past week. This trend indicates that more ETH is moving from centralized exchanges to self-custody wallets.
Ethereum has shown robust performance in 2024. Currently trading at $ 3,798, Ethereum has seen a remarkable YTD rise of 63.41%. The last 30 days have seen a 21.60% improvement, and there are positive signs in the past 24 hours (2.09%) and the last week (2.24%). These trends indicate that Ethereum is on the rise.
