Key Points
Tony “The Bull”, a technical analyst and Editorial Executive at NewsBTC, anticipates a significant surge in the value of Ethereum (ETH), the world’s second most valuable cryptocurrency. He bases this prediction on the technical candlestick formation in the ETHUSDT daily chart. Currently, Ethereum is trading above $3,000, its highest level in over two years.
The analyst highlighted the Bollinger Bands (BB) as a key technical indicator of volatility. While BB is a lagging indicator, it is often associated with decreasing volatility when its band narrows.
Historically, this “squeeze” often precedes significant breakout levels that can influence future price trends. When the bands begin to expand, as is currently the case with Ethereum, it usually signals a likely rally in the asset’s price.
According to the ETHUSDT monthly chart, Ethereum prices have been on an upward trend. Despite the general optimism in the crypto markets, Ethereum prices have remained within a narrow range in recent weeks. This has resulted in a brief period of price consolidation, or a “squeeze”.
Positive Outlook for Ethereum
With Ethereum breaking higher and trading at over $3,000, the outlook for the second most valuable cryptocurrency is promising. The coin is within a breakout formation since prices significantly exceeded January 2024 highs in February.
The optimism for further price gains is fueled by the development of the monthly chart. As the bands begin to widen and monthly bull bars band along the upper BB, it indicates high volatility. This suggests that the upward momentum is strong and could be a precursor to a significant price surge.
The response of the United States Securities and Exchange Commission (SEC) to current spot Ethereum exchange-traded fund (ETF) applications could further drive Ethereum’s price increase. If a spot Ethereum ETF is approved, it could lead to increased institutional investment in Ethereum.
Similar to the reaction to spot Bitcoin ETFs, an Ethereum equivalent could attract billions in investment. This increased institutional investment could potentially drive up Ethereum prices further.
Reddit’s plan to go public and its filing with the United States SEC reveals its intention to accumulate Bitcoin (BTC), Ethereum (ETH), and Polygon (MATIC) using excess cash. This could also contribute to a rise in Ethereum’s price.
