The recent approval of spot Ether exchange-traded funds (ETFs) by the SEC on May 23 didn't extend Ether's recent rally, which saw a roughly 25% increase last week. However, it's noteworthy that the regulatory green light didn't prompt a sell-off either, suggesting that bullish sentiment for ETH hasn't waned significantly. Traders appear to be adopting a cautious approach, opting to observe rather than rush into action.
Meanwhile, Bitcoin made a push towards $72,000 this week from its current level of $68,564, but failed to maintain momentum at higher levels. As a result, it retraced below the psychological threshold of $70,000, indicating a potential continuation of sideways movement.
The positive movements in both Bitcoin and Ether this week have spurred interest in certain altcoins showing promise in the short term. Should Bitcoin and Ether hold support levels, some altcoins could attract buying interest.
Analysis of Bitcoin prices
On May 24, Bitcoin rose over the 20-day exponential moving average ($66,814), suggesting that traders are now buying on dips and that the market is turning around.
Bulls will try to drive the price up to the $73,777 overhead resistance level. As the bears are predicted to guard it fiercely, this is a crucial level to be aware of. The price may continue to move in a range-bound manner for a little longer if it declines strongly from $73,777 and breaks below the moving averages.
However, the chances of a breakout will increase if bulls do not give up much ground from $73,777. There could be a push for the BTC/USDT pair to rise to $80,000 and ultimately $84,000.
Buyers managed to breach the downtrend line, but they're facing challenges in maintaining these elevated levels. This indicates that bearish sentiment persists, with sellers taking advantage of any upward momentum. Should the price slip below the downtrend line, it might initiate a descent towards $66,000 followed by $64,600.
To maintain a favorable position, bulls need to initiate a rebound from the moving averages and propel the price above $70,000. Achieving this could pave the way for further gains, targeting $72,000 and potentially $73,777.
Price analysis of Ether
On May 21, ether shot above $3,730, and since then, bulls have kept the price above the breakthrough point. This indicates a bull market attempt to turn the $3,730 level into a support level.
The 20-day EMA ($3,452) is beginning to rise, and the RSI is in overbought condition, indicating that an upward route is the least resistance. The price will be pushed by buyers to the $3,950–$4,100 range. It is anticipated that sellers will defend this zone with all of their might because the ETH/USDT pair might surge toward $4,868 if the bulls win out.
Buyers aim to consolidate their position by surpassing the $3,950 mark. If they accomplish this, the pair could see further upward movement towards $4,100.
However, the bears are anticipated to counteract this momentum. Their objective would be to drive the price below the 20-EMA. If successful, it might trigger profit-taking among short-term bulls, leading to a decline to $3,730 and subsequently to the 50-SMA. A breach of this level would shift the advantage towards the sellers.
Analysis of Chainlink prices
For the last three days, Chainlink's price has been hovering around the crucial overhead resistance level of $17.32, suggesting a struggle between the bulls and the bears.
The 20-day EMA ($15.96), which is upsloping, and the RSI reading above 62 indicate that the bulls are in control. A slight resistance exists at $18.68, but if bulls overcome it, the LINK/USDT pair may move as high as $20.74 and then as high as $22.
This is not the case, though, as a price decline that holds below $17.32 will signal that the markets have rejected the breakthrough. The 20-day EMA and the 50-day SMA ($14.95) could be the pair's lowest points.
Bulls are facing challenges in sustaining the price above the breakout threshold of $17.32, indicating active bearish pressure at higher levels. As the price approaches the moving averages on the 4-hour chart, it becomes a critical juncture to monitor closely. A robust rebound from the moving averages could embolden the bulls to make another attempt to drive the pair towards $18.68.
Conversely, a breach below the moving averages would indicate weakening bullish control. This could lead to a decline towards the pivotal support level of $15.44.
Price analysis of Uniswap
After buyers drove the price above the moving averages on May 20, Uniswap's rebound gained pace.
On May 26, the UNI/USDT pair moved down from the overhead resistance of $11.81, but there is a chance that it may break over $11.81 if buyers do not give up much ground to the bears. The pair may rise to $13.34 and then $15 if that occurs.
Conversely, a decline in price that falls below $10 will indicate that bulls are aggressively booking profits. This can cause the pair to drop to the 20-day moving average ($9.05) and postpone the beginning of the subsequent upward leg.
The pair experienced a downturn from the $11.81 mark, signaling strong resistance from the bears at this level. The initial support to monitor on the downside is the 20-EMA. A robust bounce from this level would indicate ongoing positive sentiment, with traders interpreting dips as chances to buy. This scenario could heighten the likelihood of surpassing the $11.81 barrier.
However, should the price reverse course and dip below the 20-EMA, it would suggest a weakening bullish stance. In such a scenario, the pair could potentially decline towards the 50-SMA.
Analysis of Arbitrum prices
For the past few days, Arbitrum (ARB) has been trying to break above the overhead resistance of $1.27, but the bears have held firm.
The fact that the bulls have prevented the price from falling below the 20-day EMA ($1.11) is a small plus for them. This raises the likelihood of a break through the resistance. The ARB/USDT pair will probably gain momentum and move higher toward $1.60 and ultimately $1.75 if that occurs.
This bullish opinion will be disproved soon if the price declines significantly and falls below $1.10. That might force the price to drop to the solid support level around $0.90.
To thwart further upside momentum, bears need to vigorously protect the $1.27 level and drive the pair below the 20-EMA. Accomplishing this could result in a decline towards the robust support at $1.10, where buyers are expected to intervene.
May 2024, Cryptoniteuae