SEC’s ETF Node May Bring ‘ETH Season’ If 3 Key Indicators Hold
Ether could retest the $5,000 lows in 2021 if three long-term indicators continue to blink, a crypto trader said.
“The dominance chart suggests that we are entering ‘ETH Season' where Ethereum may outperform other cryptocurrencies,” speculative crypto trader Blockchain Mane told Cointelegraph.
It follows the US Securities and Exchange Commission's (SEC) May 23 initial approval of eight spot ether exchange-traded funds (ETFs).
TradingView data shows ETH's dominance – the crypto market share – jumped 19.56% in the past seven days after reports emerged that the SEC is moving away from its strong stance on ETF approvals.
Blockchain Mane said another key long-term indicator, the Fibonacci retracement, is showing “strong support”. The indicator predicts the price levels at which Ether (ETH) may return based on mathematical patterns calculated from the Fibonacci sequence.
ETH “is showing resistance targets at $5080.60 and $6231.83,” Blockchain Mane said. According to CoinMarketCap, it has not traded since its all-time high of $4,878 in November 2021.
At the time of publication, Ether is trading at $3,802.
The third indicator Blockchain Mane mentions is the parabolic curve, which shows trend changes by placing points above or below Ether's price movements.
According to Mane, ETH is following a “bullish trend” with the curve, with three marked levels: base one, base two and three.
“The parabolic curve shows the continuation of the upward movement, especially after the falling wedge flash,” he said.
RELATED: Ethereum rally stalls at $3.8K – SEC ETH ETF decision already worth it?
Other crypto traders have been focusing on short-term price action between Ether ETF nodes.
“ETH is worth more this week than the S&P 500 will give you in a year,” crypto analyst Benjamin Cowen said in a May 23 X post.
Crypto trader Matthew Hyland believes it is vital for Ether to “hold” support around $3,800 for “continuing”.
The price of Ether moved little following the ETF approvals, probably due to the pre-sold price – and the fact that ETF trading hasn't started yet.
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This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
