Ethereum Plummets 14% in a Month, Analysts Forecast Bullish Reversal and ETF Boost

June 28, 2024 by Kashif Saleem

Ethereum (ETH), the second-largest cryptocurrency, has experienced a noticeable decline recently, raising questions among investors. Over the past week, ETH has dropped 6.67% and fallen 14% over the past month. Currently, Ethereum is trading at $3,372, with a slight 0.79% dip in the last 24 hours and a 5.52% decrease in trading volume.

Despite this downturn, prominent crypto analyst Yodhha provides an optimistic outlook. Analyzing the ETH/BTC trading pair over a 15-day timeframe, Yodhha highlights several technical patterns that suggest potential bullish momentum for Ethereum relative to Bitcoin. These insights indicate a promising shift in Ethereum’s performance in the near future.

One key pattern Yodhha identifies is the Inverse Head & Shoulders formation. This classic bullish reversal pattern typically signals a transition from a downtrend to an uptrend. Characterized by three troughs, with the middle trough being the lowest, the pattern suggests that Ethereum may have already entered a bullish phase, hinting at a potential price increase.

Yodhha also points to a Falling Wedge or Bull Flag formation, another bullish continuation pattern. This formation, marked by two downward-sloping, converging trendlines, often indicates a pause in an uptrend before the trend continues. In this case, the pattern suggests a potential continuation of Ethereum’s bullish trajectory, reinforcing the positive outlook.

Key Insights and Projections for Ethereum

Furthermore, Yodhha’s analysis highlights various price movements on the chart that denote significant areas of interest or previous breakout attempts. These points signify critical resistance levels that, once surpassed, could potentially trigger substantial price acceleration for Ethereum, reinforcing the bullish forecast.

The projected path in Yodhha’s analysis, denoted by an upward arrow, anticipates Ethereum breaking out of the current wedge pattern soon. This anticipated breakout could potentially propel Ethereum to new highs against Bitcoin, continuing its bullish trend and providing a positive outlook for investors.

Further optimism for Ethereum comes from potential regulatory developments. Industry experts foresee the possibility of the U.S. Securities and Exchange Commission (SEC) approving spot ETH ETFs by July 4. This anticipated approval is poised to bolster Ethereum’s market value, with financial services firm StoneX projecting a potential 40% increase in the two months following the ETF’s launch.

Additionally, StoneX offers a broader outlook, projecting Ethereum’s price to fluctuate between $2,142 and $12,621 over the next two years. These predictions are based on conservative assumptions regarding the growth of NFTs and real-world assets (RWA), which are expected to boost total value locked (TVL) and user adoption.

SEC Chair Gary Gensler has commented that the process of launching spot Ethereum ETFs is progressing smoothly, contingent on full disclosures by asset managers. This regulatory development, along with Yodhha’s technical analysis, paints a hopeful picture for Ethereum’s future despite recent declines.

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