Ethereum defends $3,800 as investors await key US economic data

• The SEC’s approval of Ethereum ETFs has caused significant price fluctuations, with Ethereum stabilizing around $3,800.

• Analysts are predicting a potential rally, with some expecting Ethereum to reach $20,000 due to growing institutional interest.

THE recent approval of Ethereum Exchange-Traded Funds (ETFs) by the US Securities and Exchange Commission (SEC) has injected new volatility into the cryptocurrency market. After the green light on May 24th, the price of Ethereum experienced significant fluctuationsranging from $3,650 to $3,950, before stabilizing around $3,800.

Market analysts anticipate price movements

The famous market analyst Jelle observed that Ethereum is consolidating above a key support level around $3,750. Jelle expects the market to hover around this area in the near term, predicting a potential rally above $4,500 in the coming months. The analyst advised investors to remain patient during this period of consolidation.

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Yoddha and Satoshi Flipper also expressed optimism about the future of Ethereum. Yoddha suggested that Ethereum is on the cusp of a new bullish cycle, which could push its price to $20,000. Satoshi Flipper he echoed this sentiment, citing the likely entry of major global banks and financial institutions into the Ethereum ecosystem following the SEC’s approval of ETFs. This institutional interest could significantly strengthen Ethereum’s valuation.

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Popular Crypto analyst Javon Marks recently provided a detailed perspective on the Ethereum market and predicted that the price could skyrocket. Marks pointed out that there was a hidden bullish pattern on the Ethereum chart, which is a pattern that can signal an increase in price even if it is not that obvious in the market. Likewise, Ethereum’s uptrend also had a brief continuation period that Marks called “tiny.”

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However, the ensuing price action created a more significant bullish pattern during a pullback. This new pattern is significant and opens up the possibility of continued strong growth. As stated by Marks, this new bullish pattern can push the price of Ethereum to $4,811 based on past price movements and potential price trends.

Institutional interest and on-chain metrics

Institutional interest in Ethereum is growing, as evidenced by the sizeable holdings of Singapore’s DBS Bank. DBS Bank, one of Singapore’s largest financial institutions, holds 173,753 ETH, worth nearly $670 million.

The price of Ethereum has increased over 100% in the last year, supported by strong on-chain metrics. A crucial indicator is the total value locked (TVL) in Ethereum-based decentralized finance (DeFi) protocols. Second DefilLama, TVL on Ethereum has increased significantly since October 2023, reaching nearly $65 billion. This increase reflects a greater inflow of capital into the ecosystem, suggesting positive market sentiment.

Another bullish metric is Ethereum’s net trading flow, which has been mostly negative over the past week. This trend indicates that more and more ETH is moving from centralized exchanges to self-custodial wallets.

Ethereum proved it robust performance in 2024. Currently trading at $3,798, Ethereum has seen a notable year-to-date increase of 63.41%. In the last 30 days there was an improvement of 21.60%, positive signs were recorded in the last 24 hours (2.09%) and in the last week (2.24%). These trends indicate that Ethereum is on the rise.

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