The United States Securities and Exchange Commission (SEC) approved the trading of Ether exchange-traded funds (ETFs) on May 23. However, this did not lead to a continuation of the recent rally in Ether, which saw a 25% increase last week. Despite this, the approval did not trigger a sell-off, indicating that bullish sentiment for ETH remains strong. Traders seem to be adopting a cautious approach and waiting to see how the market develops.
In contrast, Bitcoin (BTC) experienced a rally this week, reaching close to $72,000. However, the bulls were unable to sustain these higher levels, and the price dropped below the key psychological level of $70,000. This suggests that Bitcoin’s price may continue to move sideways.
The positive movement in Bitcoin and Ether has sparked buying interest in certain altcoins that show potential in the near future. If the support levels for Bitcoin and Ether hold, some altcoins may also see increased buying support.
Now, let’s analyze the technical indicators to determine whether Bitcoin and Ether are likely to experience further rallies, and whether buyers will return to select altcoins. We will examine the top-five cryptocurrencies that appear promising based on chart analysis.
Bitcoin’s price analysis reveals that it bounced off the 20-day exponential moving average ($66,814) on May 24, indicating a positive sentiment and buyers entering the market during price dips. The bulls will attempt to push the price to the overhead resistance of $73,777, which will likely be defended strongly by bears. If the price sharply turns down from this level and falls below the moving averages, it could indicate that the range-bound price action will continue. However, if the bulls manage to hold their ground near $73,777, it could improve the chances of a breakout, with the BTC/USDT pair potentially rallying to $80,000 and then $84,000.
Moving on to Ether’s price analysis, we see that it surged above $3,730 on May 21 and has since remained above this breakout level. This indicates that bulls are attempting to establish $3,730 as a support level. The 20-day exponential moving average ($3,452) has started to turn upward, and the relative strength index (RSI) is in the overbought territory, suggesting a bullish trend. Buyers will aim to push the price towards the $3,950 to $4,100 zone, where sellers are expected to defend vigorously. If the bulls succeed in breaking through this zone, the ETH/USDT pair could skyrocket towards $4,868. On the other hand, if the bears push the price below $3,730, it may signal the start of a correction. The pair could drop to the 20-day EMA, which should act as a strong support level. If the price rebounds from the 20-day EMA, the bulls will likely make another attempt to resume the uptrend.
Turning our attention to Chainlink (LINK), we observe that it has been trading near the critical overhead resistance level of $17.32 for the past three days, indicating a battle between bulls and bears. The upward-sloping 20-day EMA ($15.96) and the RSI above 62 suggest that bulls have the upper hand. There is a minor resistance at $18.68, but clearing this hurdle could propel the LINK/USDT pair to $20.74 and subsequently to $22. However, if the price turns down and sustains below $17.32, it will indicate a rejection of the breakout and may lead to a drop to the 20-day EMA and then the 50-day SMA ($14.95).
Moving forward, let’s analyze Uniswap (UNI). The recovery of UNI gained momentum when buyers pushed the price above the moving averages on May 20. Although the UNI/USDT pair turned down from the overhead resistance of $11.81 on May 26, if buyers can maintain their position and prevent significant losses, it increases the likelihood of a breakout above $11.81. If that occurs, the pair could surge to $13.34 and then $15. However, a price drop below $10 would suggest aggressive profit booking by bulls and could push the pair to the 20-day EMA ($9.05), delaying the next leg of the upward move.
Finally, let’s analyze Arbitrum (ARB). The bears have been successfully defending the overhead resistance of $1.27, preventing ARB from breaking above it. However, a positive signal for bulls is that they have kept the price above the 20-day EMA ($1.11). This increases the possibility of a breakout above the resistance level, potentially propelling the ARB/USDT pair towards $1.60 and eventually $1.75. However, if the price sharply turns down and falls below $1.10, it could indicate a short-term bearish trend, with the price potentially dropping to the strong support near $0.90.
Please note that this article does not provide investment advice or recommendations. It is essential to conduct thorough research and analysis before making any investment decisions.