In the past 30 days, the price of Ethereum has increased by an impressive 46%. Analysts are expecting further growth, with a potential breakout in the coin’s price. The main factors driving this optimism include strong demand for spot ETFs and an improved market structure for Ethereum. As of the time of writing, Ethereum is trading at $2630.
Analytical Predictions and Support Levels
Michaël van de Poppe, founder of MN Trading, believes that Ethereum is poised for a significant upward move. He points out that the key support level is at $2400, while the resistance zone lies between $2680 and $2850. Van de Poppe emphasizes that in order to reach a new yearly high, Ethereum needs to break through this resistance level. If the current bullish trend continues, this opens the path for even higher prices.
Technical Aspects: Holding $2500 and Potential Growth
Analyst Rekt Capital, on the other hand, notes that Ethereum is actively trying to establish $2500 as a solid support level. If this level holds, Ethereum could see further growth, possibly even to new historical highs. A similar situation was observed in mid-2021, when Ethereum’s price quickly surged after key support levels were successfully broken.
Historical Comparison: Similarities with 2016-2017
Crypto Eagles analyst draws a comparison between the current technical structure of Ethereum and the events of 2016-2017 when the asset gained significant traction and reached new records. He believes Ethereum could easily break the $6000 mark, especially if the current growth trend continues.
ETH/BTC and Its Impact on Altcoins
The ETH/BTC pair is currently trading at 0.02499, which is 41.5% higher than the multi-year low of 0.01766 reached on April 22. Trader Daan Crypto Trades points out the consolidation of ETH/BTC in the range of 0.022 to 0.026 and suggests that a breakout above this range could provide a further boost for altcoin pairs against Bitcoin. This dynamic is important as it may affect the broader cryptocurrency market, including other altcoins.
Institutional Investments: Preference for Ethereum
In recent weeks, there has been a notable shift among institutional investors, with many preferring Ethereum over Bitcoin. Spot Ethereum ETFs in the United States have seen a consistent inflow of funds for 12 consecutive days, indicating growing interest in this asset. According to a CoinShares report, from May 24 to 30, inflows into cryptocurrency investment funds totaled $286 million, with $321.4 million invested in Ethereum-based instruments.
Conclusion
The outlook for Ethereum looks very positive, with the likelihood of continued growth, especially if key resistance levels are broken. Institutional investments and technical signals support the view that Ethereum is on track to reach new all-time highs. However, investors should remain prepared for potential fluctuations, given the volatile nature of the cryptocurrency market.
