Ethereum, the leading alternative cryptocurrency, has recently dropped back to the $3,000 mark, failing to achieve the expected surge. The negative sentiment in the Bitcoin market is being reinforced by statements from members of the Federal Reserve. Despite the rise in unemployment figures, the market is becoming increasingly convinced that the decline in inflation has come to a halt.
Article Contents:
– 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 defined by the decreasing trend line resistance and Ethereum’s 50-day exponential moving average. Similar chart patterns are emerging in some other alternative coins, and predictions for ETH will also provide insight into the overall performance of alternative coins.
Despite the recent disappointing declines, the falling wedge formation on the ETH front prevents complete despair among the bulls. This formation, which is created by two converging downward trend lines, could pave the way for significant bullish breakouts.
The falling wedge indicates that when the price breaks above the upper trend line, a substantial upward movement is expected, with the distance between the upper and lower trend lines serving as a measure. If the positive scenario plays out, it is anticipated that the ETH price will range between $3,640 and $4,115 by the end of May.
On the other hand, if bears manage to break below the support line of the wedge, fueled by the negative sentiment in the overall market, things could become complicated. In such a case, the bullish scenario may reverse, and the ETH price could drop to $2,780 or even lower within May. The 200-day Exponential Moving Average (EMA) also holds significant Fibonacci levels.
Will an Ether ETF Be Approved?
As we approach the final week of this month, it is highly likely that the SEC will reject the ETH ETF applications. In addition to the recent legal investigation into the relationship between the Ethereum Foundation and network companies, several actions have been taken. 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 significant extent. Therefore, for a bullish scenario to materialize, the rejection of the ETF will remain a major negative factor until the final week of May.
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Disclaimer: The information provided in this article does not constitute investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry a significant level of risk. It is advised to conduct thorough research before making any investment decisions.