Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is showing signs of a potential rebound in the near future. Analysts have been closely watching various technical indicators, with one analyst named Ali recently highlighting a key signal that indicates a possible price surge.
According to Ali’s analysis on social media platform X, the TD Sequential indicator on Ethereum’s daily chart has issued a strong buy signal. This suggests a potential upward movement lasting one to four candlesticks. The positive outlook is further supported by Ethereum’s recent performance, which saw the asset increase by 2.3% over the last 24 hours.
Despite these optimistic technical signals, Ethereum is still trading below the critical $3,000 mark. External factors such as regulatory challenges, including concerns about the spot Ethereum ETF application with the US Securities and Exchange Commission (SEC), could impact Ethereum’s trajectory. Analysts like Eric Balchunas of Bloomberg have indicated that the SEC’s view of ETH as a security may lower the chances of ETF approval.
Market sentiment around Ethereum remains largely bullish, with a clear preference for call options over puts in the options market. Data from Deribit, a leading crypto options exchange, shows that the most popular strike price for bullish bets is $6,500. This concentration of call options above the $3,600 mark indicates that many traders expect Ethereum to reach higher levels by the end of June.
However, failure to breach the $2,925 resistance level could lead to another price decline for Ethereum. Initial support is expected near the $2,880 level, followed by major support at the $2,860 zone. If Ethereum breaks below $2,810, it could potentially fall towards $2,740, with further losses possibly pushing the price down to $2,650 in the near term.