A crypto investor says Ethereum could rise to retest the $5,000 price mark it reached in 2021 if three long-term indicators continue to flash. Crypto investor and analyst Blockchain Mane explained that the dominance chart indicates an Ethereum Season, where Ethereum is likely to outperform other cryptocurrencies.
What’s Happening on the Ethereum Front?
This development follows the Securities and Exchange Commission’s first approval of eight spot Ethereum exchange-traded funds (ETFs) on May 23. TradingView data shows Ethereum dominance increased by 19.56% in the last seven days after it emerged that the SEC had relaxed its strict stance on ETF approvals.
Blockchain Mane noted that another significant long-term indicator, the Fibonacci Retracement, shows strong support. The indicator predicts potential price levels where Ethereum could rebound based on mathematical patterns calculated from the Fibonacci sequence.
Blockchain Mane indicated Ethereum’s resistance targets as $5,080.60 and $6,231.83. According to CoinMarketCap, it has not traded near these prices since its all-time high of $4,878 in November 2021. At the time of writing, Ethereum was trading at $3,802.
Noteworthy Details
Blockchain Mane highlighted the third indicator, the Parabolic Curve, which detects potential trend changes by placing dots above or below Ethereum price movements. Mane stated that Ethereum follows an upward trend along the curve, which has three marked phases: Base 1, Base 2, and Base 3:
“The parabolic curve shows the upward movement continues, especially after breaking the descending wedge.”
Other crypto investors focus on short-term price movements during the positive approvals of the Ethereum ETF fund. Crypto commentator Benjamin Cowen mentioned in a May 23 post:
“Ethereum increased more this week than the S&P 500 did in a year.”
Crypto investor Matthew Hyland believes it is critical for Ethereum to maintain support around $3,800 for its continuation. The price of Ethereum likely remained unchanged after the ETF approvals because it was already priced in and ETF trading had not started.
