The Securities and Exchange Commission (SEC) of the United States has given the green light for several spot Ether exchange-traded funds (ETFs) on May 23. However, this decision did not have a significant impact on the price of Ether (ETH) or the overall crypto markets. This lack of reaction suggests that the ETF decision may have already been priced in by investors. A similar pattern was observed when spot Bitcoin ETFs were approved, with the price initially dipping but eventually reaching new all-time highs.
According to Bloomberg ETF analyst Eric Balchunas, the approved spot Ether ETFs are expected to launch by mid-June. Balchunas predicts that these ETFs will attract approximately 10-15% of the inflows seen by Bitcoin ETFs. Once money starts flowing into Ether ETFs, it is likely that the spot market will respond positively.
While Bitcoin remains in a sideways price action, Tom Lee, the managing partner and head of research at Fundstrat Global Advisors, remains extremely bullish. In an interview with CNBC, Lee stated that their base case for Bitcoin by the end of the year is $150,000.
To determine whether Bitcoin and select altcoins can rebound from their immediate support levels, let’s analyze the charts of the top 10 cryptocurrencies.
Bitcoin Price Analysis:
Bitcoin has reversed direction from $71,979 on May 21 and is now hovering around the moving averages. This indicates that the bears are attempting to keep the price within a range. If the price rebounds strongly from the moving averages, the bulls will try to push the BTC/USDT pair towards the overhead resistance at $73,777. A successful break above this level could pave the way for a rally to $80,000 and eventually $84,000. Conversely, if the price breaks below the moving averages, it suggests a weakening by the bulls, and the pair may drop to the strong support level at $59,600.
Ether Price Analysis:
Ether’s May 23 candlestick shows a struggle between buyers and sellers, as indicated by the long wick and long tail. The price has dipped below the important level of $3,730, which the bulls need to defend. If the price remains below this level, the ETH/USDT pair could decline to the 20-day EMA ($3,313). However, a strong rebound from this level would suggest that the bulls continue to buy on dips and will attempt to overcome the obstacle at $3,730. The bears are expected to put up a strong defense between $3,730 and $4,100, as a break above this resistance could lead to a surge to $4,868.
BNB Price Analysis:
BNB turned down from the resistance level of $635 on May 21, indicating aggressive selling by bears. The BNB/USDT pair has reached the moving averages, which serve as crucial support levels. A strong bounce from the moving averages would indicate that the bulls are buying on minor dips, improving the chances of a break above $635. In that case, the pair could rally towards $692. On the other hand, if the price breaks below the moving averages and the $560 support, it suggests that the pair may stay within the range.
Solana Price Analysis:
Solana turned down from $189 on May 21, signaling selling pressure from bears. The bulls managed to buy the dip near the breakout level of $162 on May 23, but they were unable to build upon it. Sellers are now attempting to push the price below $162, and if successful, the SOL/USDT pair may drop to $140. However, a rebound from $162 would indicate that the bulls are trying to flip the level into support. To start a rally towards $205, the buyers will need to overcome the barrier at $189.
XRP Price Analysis:
XRP has been experiencing volatile moves near the moving averages, indicating a tough battle between bulls and bears. If the bears manage to pull the price below the moving averages and the support line, the XRP/USDT pair could drop to the crucial support level at $0.46. This level is expected to attract strong buying by the bulls, potentially leading to a rebound and an extended consolidation period. To signal a weakening of bearish grip, buyers will need to clear the overhead hurdle at $0.57, which may result in a rally towards $0.67 and eventually $0.74.
Dogecoin Price Analysis:
Dogecoin has been trading between the 50-day SMA ($0.16) and the resistance level at $0.17 for the past three days. The bears attempted to push the price below the moving averages on May 23, but the bulls managed to hold their ground. The bulls are now trying to push the DOGE/USDT pair above $0.17, which could result in an upward movement towards $0.21. Conversely, if the bears defend the $0.17 level and push the price below the 20-day EMA ($0.16), the pair could slide to $0.13. In this scenario, the pair would likely remain within the $0.12 to $0.17 range for some time.
Toncoin Price Analysis:
Toncoin bulls are struggling to initiate a bounce off the moving averages, indicating continued pressure from bears. If the price remains below the 50-day SMA ($6.12), it suggests that the TON/USDT pair may continue its downward journey towards $5.57 and later $4.72. Buyers are expected to strongly defend the $4.72 level, potentially leading to a consolidation within the $4.72 to $7.67 range. A trending move is likely to occur on a break above $7.67 or a drop below $4.72, until then, the price action is expected to remain random and volatile.
Cardano Price Analysis:
Cardano’s price action has formed a symmetrical triangle pattern, indicating indecision between bulls and bears. The flattish 20-day EMA ($0.47) and the RSI just below the midpoint suggest that the ADA/USDT pair may remain within the triangle for some time. If the price stays below the 20-day EMA, the bears will attempt to push the pair below the triangle, potentially leading to a drop to the next support at $0.35. However, a turnaround from the current level would push the bulls to drive the pair above the resistance line, resulting in a rally towards $0.57 and then $0.62.
Avalanche Price Analysis:
Avalanche turned down and fell below the breakout level of $40 on May 23, indicating the presence of bears at higher levels. However, the bulls have managed to defend the price from slipping below the moving averages. If the price turns up from the current level and breaks above $42, it suggests a shift in sentiment from selling on rallies to buying on dips. This could lead the AVAX/USDT pair to surge towards $50. Conversely, if the price breaks below the moving averages, selling pressure could increase, potentially pushing the pair towards $34 and then $29.
Shiba Inu Price Analysis:
Shiba Inu re-entered the symmetrical triangle pattern on May 23, indicating a lack of demand at higher levels. The flat moving averages and the RSI near the midpoint do not provide a clear advantage to either bulls or bears. To gain the upper hand, sellers will need to push the price below the support line, potentially leading to a downside move towards the 78.6% retracement level at $0.000017. On the upside, bulls will need to drive the price above $0.000027 to clear the path for a rally to the resistance zone between $0.000030 and $0.000033.
It is important to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risk, and readers should conduct their own research before making any decisions.