Ethereum experienced significant price changes on May 27. As a result, it rose to a high of $3,973, less than $30 short of $4k. Following the hike to the peak, it retraced and is trading at $3,880 at the time of writing.
Since the spot ETF approval last week, the coin price movement has been mostly range-bound, with a few breakouts. Nonetheless, on the day of the nod, it edged close to retesting $4,000 but failed. Before the latest attempt, it peaked at $3,890.
Many analysts argue that the most recent push is related to exchange-traded funds. The filers have yet to publicly list them on their various platforms, so they are not traded at the time of writing. They added that the surges are in anticipation of when this will happen. The asset will see more.
Defiance Capital founder and CEO Arthur Cheong is in on the previous statement. He made a bullish prediction about the largest altcoin. In a post on X, he speculated that ETH could hit $4,500 before the Ethereum ETFs go live in the United States.
Another proponent predicted that the coin may register a new ATH before the main ETH event in the US.
A Build-Up to Test $4,000
Over the last seven days, the second-largest cryptocurrency closed above $3,700. During this period, it failed to end the day above $3,800 but broke the trend on May 26. Building on this trend, ETH will look forward to a close above the highlighted mark.
Nonetheless, it is worth noting that the $3,700-$3,800 channel served as an accumulation phase for the bulls. The same trend may be unfolding. The coin may see further accumulation between $3.8k and $3,900 before the anticipated $4k flip.
After flipping the mark, the asset will look to break the second pivot resistance at $4,070. Based on the pivot point standard, it may be a critical support.
Amidst the growing bullish predictions and speculations, indicators are looking optimistic.
Ethereum is Overbought
Ethereum is undoubtedly experiencing notable buying pressure. The relative strength index hints at excessive volume as it climbed above 70. Currently at 72, the coin is overbought.
The reading hints at an impending downtrend. This may be the ‘healthy’ correction the market needs before climbing above $4k.
