The cryptocurrency markets are showing a mixed trend with both bulls and bears flexing their muscles. Bitcoin dropped below $59,000 while Ethereum fell to around $3200 before bouncing back above $3400. Although prices have dipped slightly, there is a possibility of them reclaiming levels above $3500 in the coming days. The current trading setup indicates that Ethereum is gearing up for a significant upswing, with many believing it is set to skyrocket.
After a recent surge of almost 30% following a breakout from a triangle pattern, Ethereum failed to surpass $4000 and has been stuck in a downward trend, with lower highs and lows indicating bearish strength. The market is now awaiting positive fundamental catalysts before a potential price increase, with the token expected to test lower liquidity levels first.
Ethereum’s price is once again approaching a key support zone, which is likely to spark a strong bounce as seen previously. The Ichimoku cloud, a technical indicator, was previously bullish but is now hinting at a bearish crossover, suggesting a possible descent towards the support zone between $3284 and $3324 before a bullish move.
Currently, Ethereum is in a correction phase to gather momentum before potentially reaching a new all-time high. There is anticipation surrounding an Ethereum Exchange-Traded Fund (ETF) potentially launching in July, which could further boost the price rally. Traders are showing interest in call options with a strike price of $4000 and an expiration date in September.
Negotiations between issuers and regulators are ongoing, with expectations that Ethereum’s price will soar towards a new all-time high later this year.