Prominent crypto analyst Jelle has x.com/CryptoJelleNL/status/1802592128033341653″ target=”_blank” rel=”nofollow”>projected ethereum (eth) will rise to $5,000 later this year. This prediction has a notable reason from a technical perspective.
ethereum Rally: Setting the Stage for New Peaks
Jelle's forecast comes after ethereum is seeing a form of stabilization above the $3,500 mark, following a correction from its March high above $4,000.
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As the crypto community watches closely, Jelle's insights suggest significant upside potential for ethereum, particularly as the market anticipates the launch of spot ethereum exchange-traded funds (ETFs).
Jelle's analysis points to a pivotal moment for ethereum. After a brief drop in price, ethereum recovered and hit a low of $3,384 last Friday; The asset is currently trading around the $3,500 mark and is demonstrating a recovery, albeit with a decline of 2.2% in the last 24 hours and almost 5% over the past week.
This stabilization is a minor fluctuation and a critical support level that could foresee significant price movements. According to Jelle, “eth successfully converted $3,500 into support. Very few people are prepared for this to hit new all-time highs, but $5,000 eth is on the menu this year. Let's roll.”
This statement underscores a strong conviction that ethereum is recovering and preparing for a substantial upward trajectory.
Current market dynamics provide fertile ground for that optimism. ethereum's resilience to maintain key support levels amid market fluctuations bodes well for its potential to surpass previous highs.
The planned introduction of ethereum spot ETFs is expected to inject further vigor into its market capitalization, attracting institutional and retail investors drawn to its ecosystem and the promise of greater liquidity and regulatory compliance.
<blockquote class="twitter-tweet”>
twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>$eth Successfully converted $3,500 into support!
Very few people are prepared for this to hit new all-time highs, but $5,000 eth is on the menu this year.
Let's roll. pic.twitter.com/k438SvCX2o
– Jelle (@CryptoJelleNL) twitter.com/CryptoJelleNL/status/1802592128033341653?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>June 17, 2024
Strategic moves and market sentiments
The crypto market in general, especially ethereum, is abuzz with activity, anticipating the place in eth ETFs. Recent data from NewsBTC highlights that the crypto community is particularly bullish on ethereum, as evidenced by the substantial number of eth options contracts expiring.
Most of them are call options, betting on the price of ethereum rising, with a notably low put-call ratio of 0.36, indicating strong bullish sentiment among traders.
This optimistic outlook is further supported by significant purchasing activities by permanent holders, particularly institutions. On June 12, these investors made one of the largest daily purchases of ethereum, purchasing 298,000 eth, just shy of the record 317,000 eth purchased on September 11, 2023.
This investor activity not only underscores confidence in ethereum's long-term value, but also indicates a market primed for a rally, especially with potential catalysts like the approval of eth spot ETFs on the horizon.
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Furthermore, QCP Capital's analysis reinforces this sentiment, pointing out ethereum's higher implied volatility than bitcoin's. This suggests that while the overall crypto market could see moderate activity for the summer, ethereum could see significant trading volumes and price movements, especially if ETFs begin trading live.
Featured image created with DALL-E, TradingView chart
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