Ether could surge to retest the $5,000 price mark it fell short of in 2021 if three long-term indicators continue flashing, says one crypto trader.
“The dominance chart suggests we’re entering an ‘ETH Season’ where Ethereum is likely to outperform other cryptocurrencies,” pseudonymous crypto trader Blockchain Mane told Cointelegraph.
It follows the United States Securities and Exchange Commission’s (SEC) May 23 initial approval of eight spot Ether exchange-traded funds (ETFs).
TradingView data shows ETH’s dominance — its share of the crypto market — jumped 19.56% over the past seven days after reports surfaced the SEC was pivoting from its hard stance on ETF approvals.
Blockchain Mane noted another key long-term indicator, the Fibonacci retracement, was showing “strong support.” The indicator predicts possible price levels where Ether (ETH) might bounce back based on mathematical patterns calculated from the Fibonacci sequence.
ETH is showing “resistance targets at $5080.60 and $6231.83,” Blockchain Mane said. A price it hasn’t traded near since its November 2021 all-time high of $4,878, according to CoinMarketCap.
At the time of publication, Ether is trading at $3,802.
The third indicator Blockchain Mane noted was the parabolic curve, which spots potential trend changes by placing dots above or below Ether’s price movements.
Mane said ETH is following a “bullish trend” along the curve, with three marked phases: base one, base two and base three.
“The parabolic curve indicates continued upward movement, especially after the falling wedge breakout,” they said.
Related: Ethereum rally stalls at $3.8K — Is SEC ETH ETF decision already priced in?
Other crypto traders have been focusing on the shorter-term price action amid the spot Ether ETF nods.
“ETH is up more this week than the S&P 500 typically gives you in a year,” crypto commentator Benjamin Cowen said in a May 23 X post.
Crypto trader Matthew Hyland believes it’s critical for Ether to now “hold” support around $3,800 “for a continuation.”
The price of Ether barely moved following ETF approvals, likely due to it already being priced in — and because ETF trading hasn’t started.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.