Traders continue to push the price of Ethereum (ETH) near $4,000 on May 27, with the altcoin posting a 3.5% gain for the day.
Data from Cointelegraph Markets Pro and TradingView shows strong performance from Ethereum, which rose from a low of $3,048 on May 20, up 27% to a 10-week high of $3,964 on May 27 .
Ethereum’s performance over the past seven days has been largely driven by market expectations regarding the approval of exchange-traded funds (ETFs) in the United States. Although ETH performed poorly after its approval, a move towards $4,000 is considered significant.
Cryptocurrency analyst Jelly said that Ethereum has completed a long period of accumulation and with the approval of Ethereum ETFs, the price is ready to enter the “stratosphere”.
Although it “took a lot longer than expected,” market participants “finally saw the Ethereum bull market again,” Gilley explained in a May 27 article on X.
Analyst and founder of MN Capital, Michael van de Poppe, made similar observations using the weekly ETH/BTC chart. According to Van de Poppe, the weekly Relative Strength Index (RSI) produced a bullish divergence, indicating the start of a capital rotation away from Bitcoin (BTC) and into altcoins after a prolonged crypto winter.
“There is a good chance that the two and a half year bear market is finally over for Ethereum.”
“#ETH confirms bullish divergence and downtrend breakout,” crypto trader Matthew Hyland announced in a May 27 article on X, adding that an increase in trading volume “would further confirm the validity of the breakout “.
Fellow analyst Tor Demeester believes that Ethereum market euphoria has not yet been reached. In a May 25 article on X, Demeester shared the following chart: ETH/BTC “needs to cross 0.06 to become bullish.”
It is worth noting that the ETH/BTC pair was trading at 0.056 at press time, with the 50-week simple moving average (SMA) providing immediate support.
Price was needed to hold this support to increase the chances of reversing the long-term downtrend line (blue) towards support. If this happens, the ETH/BTC price will rise to meet resistance at the 0.06 level adopted by the 200-week simple moving average.
The chart below shows that crossing this level does not mean that the pair has already left the zone. It still needs to topple the 100-week simple moving average at 0.063 to confirm the breakout.
Meanwhile, data from on-chain metrics provider CryptoQuant shows that Ethereum’s balance on exchanges has declined over the past 12 months, hitting a six-year low of 13.58 million ETH on May 20 .
A decline in the Ether balance on exchanges indicates that traders are adopting long-term investment strategies, indicating increased confidence in the long-term potential and value of Ether.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.
