Rekt

A key technical chart formation suggests that Ether’s (<a href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow">ETH</a>) price is about to break out toward new all-time highs. Can Ether flip the $4,000 psychological mark into support?
<h2 id="eth-price-chart-pattern-hints-at-potential-breakout">ETH price chart pattern hints at potential breakout</h2>
Ether price rose over 27% over the past week, flipping key resistance areas into support.
Following its price rally, Ether has broken out of its falling wedge chart formation, a pattern that indicates a potential reversal from the previous downward trend.
The breakout could signal a rally to new all-time highs, according to pseudonymous crypto trader Jelle, who wrote to his 83,000 followers in a May 27 X <a href="https://x.com/CryptoJelleNL/status/1794990325380849992/photo/1" target="_blank" rel="noopener noreferrer nofollow">post</a>:
<blockquote>
 “$ETH broke out from the falling wedge, then flipped key areas into support &amp; now pushes for $4,000. New highs and new all-time highs are next.”
</blockquote>
<figure><img src="https://s3.cointelegraph.com/uploads/2024-05/21b930b8-db6d-463d-8b41-7a2ca9da5c02.jpg">
 <figcaption style="text-align: center;">Ether breakout from falling wedge formation. Source: Yelle
 </figcaption>
</figure>
The falling Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow">BTC</a>) dominance also suggests that traders’ attention is rotating toward Ether as the ETH/BTC pair has bounced in the past few days. Bitcoin’s dominance fell over 0.98% during the past five days, while Ether's dominance rose 4.4%.
Over the past 24 hours, Ether dominance rose 1.45% while Bitcoin dominance fell 0.57%, according to <a href="https://www.tradingview.com/chart/3Z94myyP/?symbol=CRYPTOCAP%3ABTC.D" target="_blank" rel="noopener noreferrer nofollow">TradingView</a>.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-05/3367aa13-34a4-4e49-9edc-9264cfb06992.png">
 <figcaption style="text-align: center;">BTC &amp; ETH dominance. Source: TradingView
 </figcaption>
</figure>
Related: <a href="https://cointelegraph.com/news/4-reasons-buy-bitcoin-below-70k" rel="noopener noreferrer nofollow">4 reasons why Bitcoin was (and still is) a buy below $70K</a>
<h2 id="eth-price-needs-to-close-week-above-3-956-analyst">ETH price needs to close week above $3,956 — analyst</h2>
Most of Ether’s current price rally can be attributed to positive developments around the first spot Ether exchange-traded funds (ETFs).
On May 20, Ether price rose nearly 20% within a day, following reports that the United States SEC <a href="https://cointelegraph.com/news/sec-reconsidering-spot-ether-etf-denial-analysts" rel="noopener noreferrer nofollow">has U-turned on spot Ether ETFs</a> — possibly due <a href="https://cointelegraph.com/news/united-states-joe-biden-sab-121-accounting-crypto-law" rel="noopener noreferrer nofollow">to political pressure</a> — with reports stating it has asked ETF exchanges to update their 19b-4 filings.
Adding to the positive investor sentiment, <a href="https://cointelegraph.com/news/ether-price-4500-before-eth-etf-defiance-capital" rel="noopener noreferrer nofollow">Ether price could rally to the $4,500</a> mark before the first spot Ether ETFs start trading, according to Arthur Cheong, the founder and CEO of crypto-focused investment firm DeFiance Capital.
In a May 26 X <a href="https://x.com/Arthur_0x/status/1794746610175615428" target="_blank" rel="noopener noreferrer nofollow">post</a>, Cheong wrote to his 167,000 followers:
<blockquote>
 “4.5k before spot ETF goes live for trading [in my opinion].”
</blockquote>
However, Ether’s price faces significant resistance at the $4,000 psychological mark. A potential move above $4,000 would liquidate over $433 million worth of cumulative leveraged short positions across all exchanges, according to <a href="https://www.coinglass.com/pro/futures/LiquidationMap" target="_blank" rel="noopener noreferrer nofollow">CoinGlass</a> data.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-05/34e2b824-4b6e-4262-be33-43b96a7a4199.png">
 <figcaption style="text-align: center;">ETH Exchange Liquidation Map. Source: Coinglass
 </figcaption>
</figure>
Ultimately, ETH price needs a weekly close above the $3,956 mark to confirm sustained bullish momentum, according to popular crypto analyst Rekt Capital, who wrote in a May 26 X post:
<blockquote>
 “Ethereum just needs to Weekly Close above $3956 (green) to move into $4000+ territory. At the moment, #ETH is forming a Lower High.”
</blockquote>
<figure><img src="https://s3.cointelegraph.com/uploads/2024-05/ff20b84f-9a95-4240-88b7-1cee490099e5.jpg">
 <figcaption style="text-align: center;">ETH/USD/ 1-week chart. Source: Rekt Capital
 </figcaption>
</figure>
Related: <a href="https://cointelegraph.com/news/ether-etfs-eth-price-10k-approval-2025" rel="noopener noreferrer nofollow">Ether ETFs could drive ETH price to $10K, but approval could take until 2025</a>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Ethereum price chart hints at $4K breakout to new all-time highs

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Cointelegraph

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