The price of Ethereum has dropped by 4.6% in the past 7 days, with a 0.2% drop in the past 24 hours, trading at $3,382. Meanwhile, the price of Bitcoin has fallen to $61,000, approaching the key support level of $60,000.
The price of Ethereum may break through 20% by the end of June.
The price trend of ETH is interesting as it is forming a descending wedge within a huge ascending triangle. In fact, the descending wedge has been forming for a month, with the price trend narrowing. Descending wedges are usually a bullish market structure, as they have a higher probability of breaking upwards.
The price of Ethereum is currently below the 50-day Simple Moving Average (SMA) but above the 200-day SMA, indicating a struggle between bears and bulls.
If the price of Ethereum breaks out of the descending wedge, it could trigger a 20% increase, bringing the asset price back to over $4,000. On the other hand, there is strong support around $3,000 for Ethereum, which could maintain the price increase.
The lag in ETH price (despite increasingly positive fundamentals) may be due to Bitcoin, causing panic among many market participants as Bitcoin approaches a dangerous support level.
The price of Bitcoin fell by 1.59% yesterday, closing at $60,807. Although there has been a slight increase today, it is still not good news.
The entire range between $60,198 and $62,252 is a dangerous area, as a close below this range could lead to a significant drop in price to the support level of $50,000.
On the positive side, if the price of Bitcoin can rebound from this level, we may soon see it soar to $70,000.
Despite positive fundamentals, the price trend of Ethereum is still lagging.
The price trend of Ethereum is expected to break through resistance before July. Gary Gensler, chairman of the U.S. Securities and Exchange Commission, told the Bloomberg Investment Channel audience that the Ethereum ETF approval process is “progressing smoothly.” In another interview with the Financial Times, Gensler stated that the ETF will start trading soon. These developments have made Ethereum investors nervous and could lead to the biggest surge in ETH and altcoins in cryptocurrency history.
Conclusion
BTC is facing downward pressure, while ETH is poised for a significant breakthrough. With Bitcoin approaching the key support level of $60,000, this price trend may indicate a short-term bearish sentiment in the wider cryptocurrency market, requiring caution and strategic decision-making.