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Ethereum, Bitcoin Setting Up New Attack on ATH Soon - Buy the Dips Along the Way

Published 05/29/2024, 05:25 AM
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  • Ethereum's ETF approval has lifted the broader crypto market.
  • Bitcoin is facing potential headwinds from Mt. Gox exchange transfers, but the long-term outlook remains bullish.
  • Meanwhile, Ethereum is eyeing all-time highs with $4,100 a key resistance level to watch.
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  • Major digital currencies are bouncing back after a rough April. May has ushered in a new mood, with price movements suggesting the correction is likely over.

    The key catalyst? The US Securities and Exchange Commission's recent approval of Ethereum ETFs, mirroring those greenlit for Bitcoin in January.

    This news sparked a 20% surge in Ethereum, the world's second-largest cryptocurrency by market cap, since mid-April. The positive sentiment spilled over to Bitcoin, which is now nearing a retest of its recent highs of around $74,000.

    Bitcoin Faces Potential Headwinds but Higher Seems Likely

    News of Bitcoin transfers from the defunct Mt. Gox exchange, totaling over $7 billion at current valuation, has raised concerns.

    These long-frozen assets could be sold after being unfrozen, potentially triggering a local correction in the $71,000 region. With the deadline for returning these funds set for November, the trading volume could spike in the coming days.

    However, despite this short-term risk, the overall outlook for Bitcoin remains bullish. While we might see a temporary dip due to Mt. Gox, the upward trend is still the most likely scenario.

    The current price consolidation could be a prelude to a breakout, potentially leading to a retest of the $71,000 zone and even new historical highs. Bitcoin 5-Hour Price Chart

    Bitcoin's bulls face two main challenges in their quest for new peaks. The first threat comes from a potential resurgence of the US dollar.

    The Fed's hawkish stance could strengthen the dollar, making Bitcoin less attractive. Additionally, short-term selling pressure might arise from Mt. GOX exchange transfers.

    If Bitcoin dips below $67,000, a test of the $65,000 support level becomes a possibility.

    Ethereum Eyes All-Time Highs

    A dramatic shift in the SEC's stance has fueled a surge in Ethereum's price. Just months ago, the SEC was skeptical of approving ETF-like funds for any cryptocurrency except Bitcoin.

    However, a recent 180-degree turn has seen the SEC greenlight such instruments for Ethereum. This decision triggered a wave of buying across the cryptocurrency market, as it opens the door for a wider range of crypto ETFs in the future. Ethereum 5-Hour Price Chart

    Technically, Ethereum bulls now have their sights set on reclaiming the all-time high of $4,100 per coin. A breakout above this level is the most likely scenario in the near term.

    However, if the price dips below $3,640, it could signal a deeper correction. This area becomes a crucial support level to watch.

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    Disclaimer:This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple perspectives and is highly risky and therefore, any investment decision and the associated risk remains with the investor.

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