An important technical chart formation indicates that the Ethereum price is poised to reach new all-time highs. Can Ethereum turn the psychological mark of $4,000 into support during this process? Ethereum’s price increased by over 27% last week, turning key resistance areas into support. Here are the notable developments and analyst comments.
Why is Ethereum Rising?
Following the price increase, Ethereum broke out of a falling wedge chart formation, which potentially indicates a reversal of the previous downtrend. According to crypto investor Jelle, who shared his thoughts with 83,000 followers in a May 27 X post, this breakout could signal a rally towards new all-time highs:
“Ethereum broke out of the falling wedge, turned key areas into support, and is now pushing $4,000. New peaks and new all-time highs are next.”
The declining Bitcoin dominance and the recent rise in the ETH/BTC pair over the past few days also indicate that investors are turning their attention to Ethereum. Bitcoin’s dominance dropped by over 0.98% in the past five days, while Ethereum’s dominance increased by 4.4%. According to TradingView, Ethereum’s dominance rose by 1.45% in the last 24 hours, while Bitcoin’s dominance fell by 0.57%.
Notable Price Prediction from a Famous Name
Most of Ethereum’s current price increase can be attributed to positive developments around the first spot Ethereum exchange-traded funds. On May 20, Ethereum’s price surged nearly 20% in one day following reports that the US SEC likely requested updates to the 19b-4 filings for spot Ethereum ETFs due to political pressure.
According to Arthur Cheong, founder and CEO of crypto-focused investment firm DeFiance Capital, in addition to positive investor sentiment, Ethereum’s price could rise to $4,500 before the first spot Ethereum ETFs start trading. In a May 26 X post, Cheong wrote to his 167,000 followers:
“Ethereum’s price could reach $4,500 before spot ETF funds start trading.”
However, Ethereum’s price faces significant resistance at the psychological barrier of $4,000. According to CoinGlass data, a potential move above $4,000 would lead to the liquidation of cumulative futures short positions worth $433 million across all exchanges.
