Prominent crypto analyst Jelle has projected Ethereum (ETH) to surge to $5,000 by the end of this year. This prediction comes with a notable reason from a technical perspective.
Ethereum Rally: Setting the Stage For New Peaks
Jelle’s forecast comes after Ethereum is experiencing a form of stabilization above the $3,500 mark, following a correction from its March high of over $4,000.
As the crypto community watches closely, Jelle’s insights suggest significant bullish 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 dip in price, Ethereum has rebounded, reaching as low as $3,384 last Friday; the asset is currently trading around the $3,500 mark and demonstrating a recovery though with a 2.2% decrease in the last 24 hours and nearly 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 turned $3,500 into support. Very few people are ready for this one to make new all-time highs, but $5,000 ETH is very much on the menu this year. Let’s roll.”
This statement underscores a strong conviction that Ethereum is recovering and gearing up for a substantial upward trajectory.
The current market dynamics provide a fertile ground for such optimism. Ethereum’s resilience in maintaining key support levels amidst market fluctuations bodes well for its potential to breach previous highs.
The anticipated introduction of spot Ethereum ETFs is expected to inject further vigor into its market cap, attracting institutional and retail investors drawn to its ecosystem and the promise of enhanced liquidity and regulatory compliance.
$ETH successfully turned $3,500 into support!
Very few people are ready for this one to make new all-time highs, but $5,000 ETH is very much on the menu this year.
Let’s roll. pic.twitter.com/k438SvCX2o
— Jelle (@CryptoJelleNL) June 17, 2024
Strategic Movements and Market Sentiments
The broader crypto market, especially Ethereum, is buzzing with activity, anticipating the spot on ETH ETFs. Recent data from NewsBTC highlights that the crypto community is particularly bullish on Ethereum, as evidenced by the substantial number of contracts that expire ETH options.
Most of these are call options, betting on Ethereum’s price rise, with a notably low put-call ratio of 0.36, signaling a strong bullish sentiment among traders.
This optimistic outlook is further supported by significant buying activities from permanent holders, particularly institutions. On June 12, these investors made one of the largest daily purchases of Ethereum, buying 298,000 ETH, just shy of the record 317,000 ETH purchased on September 11, 2023.
Such investment activity not only underscores the confidence in Ethereum’s long-term value but also indicates a market poised for a rally, especially with potential catalysts such as the approval of ETH spot ETFs on the horizon.
Moreover, QCP Capital’s analysis reinforces this sentiment, noting Ethereum’s higher implied volatility than Bitcoin. This suggests that while the general crypto market might experience subdued activity by summer, Ethereum could see significant trading volumes and price action, particularly if the ETFs start trading live.
Featured image created with DALL-E, Chart from TradingView
Source: NewsBTC