Although not posting as substantial gains as some other altcoins, Ethereum ($ETH) has also headed north amid the overall market revival.
In the meantime, many analysts believe that the asset could be gearing up for a big move, while certain indicators support the bullish scenario.
What’s Next After the Golden Cross?
$ETH finally reclaimed $2,400 earlier today after failing to do so over the past few weeks, but continues to dabble with it now. The most obvious catalyst for its price ascent seems to be the broader market rebound, fueled by fresh developments in the Middle East and other factors.
Earlier today (May 6), numerous reports indicated that the US and Iran are close to reaching a peace deal and eventually reopening the Strait of Hormuz. Besides pushing the crypto market up, the news was followed logically by a plunge in oil prices.
According to the popular analyst Ali Martinez, $ETH’s uptrend may continue in the near future. He spotted the formation of a so-called golden cross on the asset’s chart, a pattern that appeared in the final days of April. This setup is considered bullish and happens when the 50-day moving average crosses above the 200-day moving average. Martinez believes it could open the door to a rally to as high as $2,680, or a 12% increase from current levels.
The X user Max Crypto also pointed to $2,680, but for a completely different reason. They noted that $ETH has an unfilled CME gap at that zone – a price discrepancy created when CME futures close for the weekend and reopen at a different level. Markets tend to fill these voids over time, which is why traders pay close attention to them.
For his part, Ted predicted that a breakout above $2,400 could push the valuation of the second-biggest cryptocurrency towards $2,500-$2,600.
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Is $ETH Not Done Yet?
The institutional interest in the asset has increased lately, signaling that Ethereum’s price may continue its upswing. SoSoValue’s data displays that inflows into spot $ETH ETFs have surpassed outflows during the first days of May, suggesting that pension funds, hedge funds, and other investors have boosted their exposure to the asset. This development is seen as bullish because the companies issuing these products must buy real $ETH to back the shares they sell to customers.
Moreover, Ethereum’s exchange reserves fell to a fresh ten-year low of around 14.3 million coins. This means investors continue to abandon centralized platforms and move to self-custody, thereby reducing immediate selling pressure.
