Ethereum bulls rising? A key indicator showing significant growth

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Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has recently shown signs that a potential rebound is on the horizon.

Analysts closely monitor various technical indicators, and one such analyst, Ali, did so highlighted a key signal indicating an impending price raise.

TD Sequential Signals Buy as Ethereum Eyes Recovery

According to Ali’s social media platform X analysis, the TD Sequential indicator on the Ethereum daily chart sent a powerful buy signal, indicating a possible upward move lasting one to four candlesticks.

This positive outlook is confirmed by Ethereum’s recent results, which increased the asset by 2.3% in the last 24 hours.

ETH price is moving sideways on the 4-hour chart. Source: ETH/USDT incl

However, Ethereum remains below the critical $3,000 level. Despite hopeful technical signals, external factors such as regulatory challenges could impact Ethereum’s trajectory.

Of particular concern is a potential rejection of the operate of a spot ETF for Ethereum by the U.S. Securities and Exchange Commission (SEC), as analysts such as Bloomberg’s Eric Balchunas suggest that the SEC’s perception of ETH as a security could significantly reduce the ETF’s chances of approval.

Market sentiment and options trading trends

While the regulatory landscape poses challenges, market sentiment around Ethereum remains largely bullish. In particular, the options market is showing a clear preference for calls over puts, indicating that investors are betting on the Ethereum price rising.

Data from Deribit, a leading crypto options exchange, shows that the most popular strike price among these bullish bets is an ambitious $6,500.

This concentration of call options, particularly those above $3,600, suggests that much of the market expects Ethereum to reach higher levels by the end of June.

However, according to the latest NBTC analysis, Ethereum’s failure to break the resistance level at $2,925 could result in another price decline. Initial support is located near the $2,880 level, followed by major support at the $2,860 zone.

If Ethereum falls below $2,810, it could potentially fall towards the $2,740 level, and further losses could push the price down to $2,650 in the near future.

Featured image from Unsplash, chart from TradingView


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