• Ethereum ↑ over 20% this week
  • Crypto could rally another 35,000 points
  • Prices bullish on D1 but RSI overbought
  • Key level of interest at $3806.49 & $40000

Ethereum is back in the spotlight after soaring over 20% this week.

The world’s second-largest cryptocurrency by market cap has been boosted by growing expectations around US regulators finally approving spot ETFs.

Investors remain hopeful after the US Securities and Exchange Commission (SEC) showed an interest in giving the green light after months of uncertainty.

This could be a pivotal moment for Ethereum which may ride the crest of this ETF wave to a fresh year-to-date high beyond $4094.

However, this will depend on what the SEC does tomorrow (Thursday, May 23rd) – the final deadline to decide on VanEck’s spot Ethereum application.

Just like we saw with Bitcoin ETFs, the approval of an Ethereum ETF would increase the exposure of the cryptocurrency. This may lead to potential inflows of new investors due to the easier and greater access.

Regarding the technicals, Ethereum bulls (those looking to see Ethereum prices rally), could set their sights on these near-term resistance levels.

  • $3806.49: - The 261.8 Fibonacci level where price is testing today after being rejected yesterday.

  • $40000: - A psychologically important level.

The crypto bears (those looking to see prices of Ethereum decline), on the other hand may take advantage of a possible “buy the rumour sell the fact scenario”, and have their sights set on the near term support at:

  • $3445.05 which is the golden 161.8 Fibonacci ratio.

The Fibonacci retracement tool is drawn from May 6th, high at $3221.68 to May 14th, low at 2860.24.

Looking at the Relative Strength Index (RSI), an indicator that highlights zones in the market that are saturated with buyers (overbought) and sellers (oversold), Ethereum is technically overbought.