Ethereum, the largest alternative coin based on market value, has recently dipped back down to the $3,000 mark, failing to achieve the anticipated surge. The pessimism surrounding Bitcoin’s price is further reinforced by statements from members of the Federal Reserve. Despite the rise in unemployment figures, the market is starting to believe that the decline in inflation has come to a halt.
Content:
How Much Will Ethereum Cost?
Will an Ether ETF Be Approved?
How Much Will Ethereum Cost?
The recent decline in the “king of alternative coins” is part of a correction that began in the “selling zone.” This price range is formed by the decreasing trend line resistance and Ethereum’s 50-day exponential moving average. Similar chart patterns are emerging in some alternative coins, and predictions for ETH will also provide insight into the overall performance of alternative coins.
Despite the recent frustrating declines, the falling wedge pattern on the ETH front prevents bullish hopes from being completely shattered. This pattern, created by two converging downward trend lines, has the potential to pave the way for significant bullish breakouts.
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In the falling wedge pattern, when the price breaks above the upper trend line, a substantial upward movement is expected as it rises by the maximum distance between the upper and lower trend lines. If the positive scenario unfolds, it is projected that the ETH price will range between $3,640 and $4,115 by the end of May.
On the other hand, if bears start closing below the support line of the wedge, fueled by the negative sentiment in the overall market, things could become complicated. In this case, the bullish scenario could reverse, and the ETH price may drop to $2,780 or even lower within May. The 200-day Exponential Moving Average (EMA) also holds significant importance for Fibonacci levels.
Will an Ether ETF Be Approved?
As we approach the final week of this month, it is likely that the SEC will reject the ETH ETF applications. In addition to the recent legal steps taken to investigate the relationship between the Ethereum Foundation and network companies, several actions have been initiated. Robinhood has received a Wells notice, Uniswap has been targeted, and the SEC has explicitly stated that ETH is considered a security.
Given all these developments, nearly all experts are confident in the rejection of the ETH ETF. The current price level already reflects this expectation to a great extent. Therefore, for a bullish scenario to materialize, the ETF rejection will remain a significant negative factor looming over us until the last week of May.
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Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware that cryptocurrencies are highly volatile and therefore carry risks. It is recommended to conduct thorough research before making any investment decisions.
