Ethereum price surges, breaks out of falling wedge pattern
Bullish market sentiment and the possible approval of U.S. spot Ether ETFs are the main drivers of Ether’s ascent.
Over the last week, Ethereum (ETH) has had a notable price increase of over 27%, breaking out of a falling wedge chart pattern. This breakthrough raises the prospect of Ether hitting new all-time highs and points to a possible turnaround from the prior decline.
When prices in a converging decline make lower highs and lower lows, a bullish reversal pattern known as a falling wedge is formed. The pattern’s breakout suggests that buyers are taking the initiative and that selling pressure is decreasing. Ether has also turned important zones of resistance into areas of support, creating a strong foundation for future gains.
The recent increase in Ethereum’s price has coincided with a decrease in Bitcoin’s market share, indicating that traders’ focus is moving to Ether. Over the last five days, Ethereum’s dominance has increased by 4.4%, while Bitcoin’s dominance—which gauges the cryptocurrency’s market share in relation to the broader market—has decreased by more than 0.98%. Ethereum’s dominance has risen by 1.45% in the last day, while Bitcoin’s dominance has dropped by 0.57%.
Ethereum’s ability to rise further is also seen favorably by analysts, who believe that the cryptocurrency might hit $4,500 before the first spot Ether exchange-traded funds (ETFs) are introduced in the US.
Before the first spot Ether ETFs begin trading, Arthur Cheong, the founder and CEO of the cryptocurrency-focused investment business DeFiance Capital, thinks Ether might rise to $4,500. Cheong said on X that “4.5k before spot ETF go live for trading imo” in a post from May 26.
The latest developments about the possible legalization of spot Ether ETFs in the United States are the main factor driving the optimistic feeling surrounding Ethereum’s price outlook. Following news that the U.S. Securities and Exchange Commission (SEC) had reversed course on spot Ether ETFs, presumably as a result of political pressure, Ether’s price increased by about 20% in a single day on May 20.
As of May 28, the market capitalization of Ethereum (ETH) is USD 463.51 billion, trading at around $3,800.