Ethereum

Based

Rally

Investors are extremely optimistic ahead of the potential approval of spot <a href="https://coingape.com/spot-ethereum-etf-takes-center-stage-in-u-s-politics-heres-how/" rel="noopener noreferrer nofollow">Ethereum ETFs</a>. The hype around the green light was reignited on Monday after&nbsp; ETF analysts revised their prediction to a 75% chance from 25%. Crypto prices rallied in general with Ether taking the lead towards the psychological resistance at $4,000. Based on the current Ethereum price forecast, the market is thawing with optimism for a large breakout eyeing new record highs around $5,000.
Ethereum hovered at $3,715 on Wednesday, sustaining a 1.8% drop in 24 hours. A 32% dip in the trading volume to $29 billion according to <a rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/currencies/ethereum/">CoinMarketCap</a> backs the intent to sell the news and take early profits.
<h2 class="p1" id="ethereum-price-forecast-as-open-interest-soars-to-15b">Ethereum Price Forecast As Open Interest Soars To $15B</h2>
Following the activation of the Ethereum ETF frenzy, open interest in the <a href="https://coingape.com/markets/crypto-price-analysis-top-meme-coins-outpace-market-eth-etf/" rel="noopener noreferrer nofollow">ETH</a> futures market soared to $14.87 billion from $11.25 billion, representing a 24.3% growth in three days.
<figure id="attachment_198194" aria-describedby="caption-attachment-198194" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-198194" src="https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-22-at-15.41.54.png" alt="Ethereum OI chart | Coinglass" width="2734" height="958" srcset="https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-22-at-15.41.54.png 2734w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-22-at-15.41.54-300x105.png 300w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-22-at-15.41.54-1224x429.png 1224w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-22-at-15.41.54-768x269.png 768w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-22-at-15.41.54-1536x538.png 1536w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-22-at-15.41.54-2048x718.png 2048w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-22-at-15.41.54-150x53.png 150w" sizes="(max-width: 2734px) 100vw, 2734px">
 <figcaption id="caption-attachment-198194" class="wp-caption-text">
 Ethereum OI chart | Coinglass
 </figcaption>
</figure>
An increase in open interest often backs a bullish outlook in the cryptocurrency. It reveals the rise in investor interest, suggesting that buyers have the upper hand.
The <a rel="noopener noreferrer nofollow" href="https://alternative.me/crypto/fear-and-greed-index/">crypto greed &amp; fear index</a> reinforces the growing sentiment, holding at 76 from 64 last week.
This metric measures the current sentiment in the crypto market, keeping in mind fear signals worry—interpreted as an opportunity to buy. On the other hand, greed implies that the market could be due for a correction.
That said, it might be wise to wait until the <a href="https://coingape.com/markets/crypto-price-analysis-top-meme-coins-outpace-market-eth-etf/" rel="noopener noreferrer nofollow">ETF</a> is approved to avoid sudden corrections, in case the SEC rejects the applications. Some investors would be ready to sell in case of unfavorable news.
<figure id="attachment_198193" aria-describedby="caption-attachment-198193" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-198193" src="https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-22-at-15.54.31.png" alt="Crypto fear &amp; greed index" width="1538" height="680" srcset="https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-22-at-15.54.31.png 1538w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-22-at-15.54.31-300x133.png 300w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-22-at-15.54.31-1224x541.png 1224w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-22-at-15.54.31-768x340.png 768w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-22-at-15.54.31-1536x679.png 1536w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-22-at-15.54.31-150x66.png 150w" sizes="(max-width: 1538px) 100vw, 1538px">
 <figcaption id="caption-attachment-198193" class="wp-caption-text">
 Crypto fear &amp; greed index
 </figcaption>
</figure>
<h2 class="p1" id="what-next-as-ethereum-price-wobbles">What Next As Ethereum Price Wobbles</h2>
The crypto market faced high volatility on Wednesday, further destabilizing Ethereum’s bullish structure. A correction below the $3,700 level appeared imminent, reflecting Bitcoin’s drop to $69,500 as seen on <a rel="noopener noreferrer nofollow" href="https://www.coingecko.com/">CoinGecko</a>.
<figure id="attachment_198192" aria-describedby="caption-attachment-198192" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-198192" src="https://coingape.com/wp-content/uploads/2024/05/ETHUSD_2024-05-22_16-16-28.png" alt="Ethereum price forecast chart | Tradingview" width="2694" height="1444" srcset="https://coingape.com/wp-content/uploads/2024/05/ETHUSD_2024-05-22_16-16-28.png 2694w, https://coingape.com/wp-content/uploads/2024/05/ETHUSD_2024-05-22_16-16-28-300x161.png 300w, https://coingape.com/wp-content/uploads/2024/05/ETHUSD_2024-05-22_16-16-28-1224x656.png 1224w, https://coingape.com/wp-content/uploads/2024/05/ETHUSD_2024-05-22_16-16-28-768x412.png 768w, https://coingape.com/wp-content/uploads/2024/05/ETHUSD_2024-05-22_16-16-28-1536x823.png 1536w, https://coingape.com/wp-content/uploads/2024/05/ETHUSD_2024-05-22_16-16-28-2048x1098.png 2048w, https://coingape.com/wp-content/uploads/2024/05/ETHUSD_2024-05-22_16-16-28-150x80.png 150w" sizes="(max-width: 2694px) 100vw, 2694px">
 <figcaption id="caption-attachment-198192" class="wp-caption-text">
 Ethereum price forecast chart | Tradingview
 </figcaption>
</figure>
As the Relative Strength Index (RSI) retreats into the neutral area from a two-month high at 72, the path of least resistance may gradually shift downwards. If support at $3,600 weakens and declines increase, the grey band will stand in line to prevent more bleeding toward $3,000.
Nevertheless, a recently formed golden cross pattern may be worth considering, especially for traders who might be in panic mode. This pattern was established when the 20-day Exponential Moving Average (EMA) climbed above the 50-day EMA.
It affirmed the general bullish outlook in Ethereum. Hence, the importance of following the long-term outlook as opposed to reacting to sudden short-term movements in the market.
As discussed earlier, a 75% chance of the<a href="https://coingape.com/grayscale-eliminates-staking-from-its-spot-ethereum-etf-plan/" rel="noopener noreferrer nofollow"> ETF</a> approval cannot be ignored. Therefore, the following days will be important in determining whether Ethereum will set the momentum for a parabolic rally to $10,000 or a drop below $3,000.
The post <a href="https://coingape.com/markets/ethereum-price-forecast-as-etf-approval-lingers-rally-to-10000-imminent/" rel="noopener noreferrer nofollow">Ethereum Price Forecast As ETF Approval Lingers: Rally To $10,000 Imminent?</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Ethereum Price Forecast As ETF Approval Lingers: Rally To $10,000 Imminent?

Table of Contents

Coingape News Media

Other articles published on May 22, 2024

Bitget Announces Thetanuts Finance (NUTS) Listing on PoolX

Buterin Transfers ETH To Railgun Monthly: Boost For Privacy Or Red Flag?

Shiba Inu Increases Token Burn Rate Significantly

Pepe (PEPE) Reaches Record Trading Volumes, Catches Up with BTC and ETH

What a Potential Ethereum Spot ETF Could Mean for Cryptocurrencies?

Grabby Trump (GRATRUMP) to Skyrocket 14,000% as KuCoin Listing Announced, While Shiba Inu and Dog...

Join our free newsletter for daily crypto updates!