quick look
- Ethereum rises another 6% to exceed $3,700, reaching its highest level since early 2022.
- The cryptocurrency giant's total rise exceeds 40% in three weeks, reflecting a broader market recovery.
- Immediate resistance lies between $3,780 and $3,850, with the $4,000 psychological mark in focus.
- On-chain data shows strong bullish conviction despite overbought warnings on the technical front.
Ethereum (ETH) It saw a significant rise, attracting the attention of investors and analysts alike. With a 6% increase beyond $3,700, Ethereum crossed the $3,700 threshold and made a new multi-month high at $3,715. This rise represents a larger 40% rise over the past three weeks, indicating a recovery in the broader cryptocurrency market. The smart contract platform maintained momentum, staying above key support levels and paving the way for further gains.
Ethereum Eyes $4,000, Meets Resistance
This rise coincided with Bitcoin breakouts, indicating a synchronized rise in the market. Ethereum's pattern of higher highs and higher lows has reignited optimism about a potential rally to record highs. However, the path is full of resistance, especially between $3,780 and $3,850, which Ethereum must clear to target the coveted $4,000 mark. Despite these challenges, market sentiment is supported by Ethereum's upgrade roadmap and the resilience of its largest holders amid recent volatility. However, technical indicators are warning of overbought conditions, suggesting that bulls should tread carefully against potential short-term pullbacks.
BlackRock ETF delay raises speculation
The regulatory landscape has seen notable developments, particularly with the SEC's decision to delay approval of BlackRock's spot ETF. This decision comes after the regulatory body approved several Bitcoin ETFs, highlighting the growing institutional interest in the cryptocurrency as an asset class. BlackRock's dominance of the bitcoin ETF market, with $10 billion in assets under management, underscores the significant impact a similar Ethereum product could have. While the delay is in line with analyst expectations, it introduces a layer of anticipation and speculation around Ethereum's future regulatory climate and its potential impacts on investor sentiment and market dynamics. The Securities and Exchange Commission has postponed its decision on BlackRock's Ethereum ETF until May 23.
Ethereum's rise indicates a strong recovery for the cryptocurrency market, supported by strong investor confidence and positive technical indicators. However, its path forward is full of resistance levels and regulatory hurdles that could affect its direction in the short term. Investors and market watchers will be watching these developments closely as Ethereum progresses towards new heights.
