Ethereum Price: How 30% Spike To $5,000 Could Trigger Altcoin Season

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As a researcher with a background in cryptocurrency markets, I believe that the current situation presents an interesting opportunity for investors looking to buy altcoins. The recent pullback in both Bitcoin and Ethereum prices has created a buying window for those who want to apply dollar cost averaging strategies. Moreover, the upcoming approval of Ethereum ETFs could serve as a catalyst for fresh interest in Ethereum and potentially other altcoins.

The price of Ethereum is at a significant turning point, with support holding firm at $3,400 and a recovery effort underway above $3,600. As for Bitcoin, it’s shaping up to be an influential week as it regains control above the $65,500 mark. With both major cryptocurrencies displaying modest gains, investors are increasingly viewing the recent sell-off as a valuable opportunity. This perspective allows them to employ strategic dollar cost averaging tactics, purchase dips, and potentially amplify profits in the latter part of the year.

Factors Likely To Drive  The Next Altcoin Season

The Crypto Fear and Greed Index currently stands at 64, indicating that investors’ sentiment remains largely greedy but has noticeably decreased from last week’s level of 74. This index, developed by Alternative, measures market sentiment using a scale where 0 represents extreme fear and 100 indicates extreme greed.

Markets behave like living organisms, with emotions shaping their trends. As exuberance grows, investors are often driven by the fear of missing out (FOMO) to make impulsive decisions, pushing prices up. However, this dynamic also brings about the risk of a sudden reversal as some investors cash in on their profits. It’s usually prudent to avoid purchasing when the crypto market sentiment is strongly skewed towards greed or fear.

From my perspective as an analyst, a decrease in metrics on the opposing side implies that greed may be surfacing. The reason being, sentiment is dwindling which encourages some individuals to sell. This selling frenzy could stem from the fear of losing invested capital or a desire to secure already gained profits.

Investors may find it beneficial to purchase assets when the market is experiencing a downturn, even if the fear and greed index indicates a relatively low level of 64. This could be an opportune moment to invest in preferred altcoins.

As an analyst, I’ve observed that Ethereum’s price has experienced a 1.3% rise within the last 24 hours, reaching a value of $3,585 on Thursday. This incremental increase has resulted in a 0.81% market cap expansion, amounting to a total worth of approximately $438 billion. However, it’s important to note that Ethereum’s trading volume has seen a significant decrease by around 30%, now standing at roughly $14 billion. This reduction could potentially hinder future growth opportunities in the upcoming sessions.

Despite this, it appears that investors are focused on the imminent availability of spot Ethereum ETFs. The Securities and Exchange Commission (SEC) has approved the listing of these ETFs, but further approval is required for their operators before trading can commence on stock exchanges.

The Securities and Exchange Commission (SEC) terminated its probes regarding Ethereum, adding to the growing belief that Ether may not be classified as a security.

Expert’s response:

New development: The anticipated launch date for the Ether spot ETF has been advanced to July 2nd. We’ve learned that the Securities and Exchange Commission (SEC) staff have recently reviewed and provided feedback on the issuers’ S-1 filings. The comments received were minor, and they are expected to request revisions within a week. It’s likely that the SEC will then declare these filings effective shortly after, potentially leading to the ETF’s launch.

— Eric Balchunas (@EricBalchunas) June 14, 2024

The initiation of Ethereum ETF trading may reignite enthusiasm for Ethereum and other alternative coins. For conventional investors, purchasing Ethereum through exchanges could now be a more accessible option, thereby bolstering confidence in the cryptocurrency market.

As a crypto investor, I’m keeping a close eye on the expectations of analysts at CoinGape regarding potential altcoins that could be the next contenders for spot Exchange-Traded Funds (ETFs). Based on their analysis, Solana, XRP, and Dogecoin are believed to be in the running. This development could mark a significant turning point for these coins.

As a researcher studying the cryptocurrency market, I believe that this particular move could have a positive impact on the entire market, including Bitcoin. It might even mark the long-awaited arrival of the altcoin season, where alternative cryptocurrencies experience significant growth alongside Bitcoin.

Ethereum Price Stares At A 30% Breakout

The cost of Ethereum is showing significant progress in its bounce back after dipping to $3,400. At present, the digital currency hovers above two Exponential Moving Averages (EMAs), specifically the 20-day and the 50-day.

If the stock price finishes a day above the $3,600 resistance level, it would be a sign that buyers are regaining control and pushing for a surge past $4,000. An inverted head and shoulders pattern visible on the daily chart could further strengthen this bullish outlook when confirmed.

Ethereum Price: How 30% Spike To $5,000 Could Trigger Altcoin Season

In the Ethereum price prediction scenario, a bullish pattern is confirmed when the price surpasses the $3,800 neckline resistance. After entering above this threshold, traders anticipate a potential 30% price increase, bringing them close to $5,000.

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2024-06-20 15:02