Why Is Ethereum Price Going Up? ETH Soars To $3,900 As ETF Hype Escalates
The Ethereum price surged last week after news of an Ethereum ETF broke out. The asset, however, found some resistance around the $3,500 level and has since been consolidating around this area.
ETH price today is $3,914, which represents a 3.4% increase in the past 24 hours and a 32.6% increase in the past 7 days. The asset continues to show signs of bullish tendencies as the Ethereum ETF news hype settles.
Ethereum Price Analysis: ETH Set For 6% Profit Target Amid Falling Wedge Breakout
Based on technical analysis principles, in upward breakouts, the highest peak in the pattern (A) serves as the price target. While Eth’s price broke out of the falling wedge pattern, it hasn’t yet reached the point (A). This suggests that Ethereum may still have another 4-6% gains to achieve before hitting this target.
Additionally, ETH price action continues to trend steadily above the 50-day and 200-day simple moving averages (SMAs) on the four-hour chart. These indicators offer support levels at $3,614 and $3,317, respectively, in case ETH price experiences a retracement.
The Ethereum 1-hour price chart shows the formation of another smaller ascending triangle with bullish price target implications. If Ethereum breaks out of this ascending triangle pattern, the price may rise 12% to touch $4,439.
However, bullish momentum may take it much higher than that. On its way up, Ethereum may contest with key resistance points around $4,100 and $4,496.
Future Outlook for Ethereum Price
The Ethereum price outlook is bullish. The small surge in price witnessed last week was nothing compared to what was expected. In comparison to the rally Bitcoin experienced in the wake of its ETF approval, Ethereum may still have some upward journeying to do.
The relative strength index (RSI) for ETH sits at 68 after retracing from the overbought region touched last week. Despite the retracement, the RSI is on an uptrend, which indicates bullish momentum is increasing.
Ethereum dominance also received a major boost following the recent price spike. After rising by 21%, ETH now has over 18% dominance over the entire crypto market industry.
Bottom Line
As the markets digest the Ethereum ETF news and ponder its implications, ETH price is gearing up for another run-up. The month of May has resulted in most crypto coins consolidating, but not Ethereum. For ETH price, it may have been the beginning of its bull run for this super cycle.
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