The United States Securities and Exchange Commission (SEC) approved spot Ether exchange-traded funds (ETFs) on May 23, but this did not lead to a further increase in Ether’s price, despite its rally of about 25% the previous week. However, the fact that there was no immediate sell-off indicates that the ETH bulls are not rushing to exit the market, suggesting a cautious approach from traders.
In contrast, Bitcoin (BTC) experienced a rally near $72,000 this week but failed to sustain the higher levels, falling below the psychological level of $70,000. This suggests that Bitcoin may continue to trade sideways for the time being.
Despite this, the positive movement in Bitcoin and Ether has sparked interest in certain altcoins that show potential in the near future. If the support levels for Bitcoin and Ether hold, these altcoins may find buying support.
To determine whether Bitcoin and Ether will experience further rallies, and if buyers will return to select altcoins, let’s analyze the top five cryptocurrencies that show promise on the charts.
Bitcoin’s price analysis reveals that it bounced off the 20-day exponential moving average ($66,814) on May 24, indicating a positive sentiment among traders who are buying on dips. The bulls will aim to push the price to the overhead resistance of $73,777, which is an important level to watch as it is expected to face strong opposition from bears. If the price sharply declines from $73,777 and falls below the moving averages, it suggests that the range-bound action may continue. However, if the bulls manage to hold ground above $73,777, it improves the chances of a breakout, with the BTC/USDT pair potentially rallying to $80,000 and then to $84,000.
As for Ether, it surged above $3,730 on May 21, and the bulls have successfully maintained the price above the breakout level. This indicates that the bulls are attempting to establish $3,730 as a support level. The 20-day exponential moving average ($3,452) has started to turn up, and the relative strength index (RSI) is in the overbought territory, suggesting that the path of least resistance is to the upside. Buyers will aim to push the price to the $3,950 to $4,100 zone, which is expected to face strong resistance from sellers. If the bulls manage to overcome this zone, the ETH/USDT pair could surge towards $4,868. On the other hand, if the bears push the price below $3,730, it may signal the start of a correction, with the pair potentially dropping to the 20-day EMA, which should provide strong support. If the price rebounds off the 20-day EMA, the bulls will attempt to resume the uptrend.
Moving on to Chainlink, the cryptocurrency has been trading near the critical overhead resistance level of $17.32, indicating a battle between the bulls and bears. The 20-day exponential moving average ($15.96) and the RSI above 62 suggest that the bulls currently have the upper hand. There is a minor resistance at $18.68, but if the bulls can overcome this hurdle, the LINK/USDT pair could rally to $20.74 and eventually to $22. However, if the price turns down and sustains below $17.32, it indicates that the breakout has been rejected, potentially leading to a drop to the 20-day EMA and then to the 50-day simple moving average (SMA) at $14.95.
In the case of Uniswap, its recovery gained momentum after the price moved above the moving averages on May 20. The UNI/USDT pair faced resistance at $11.81 on May 26 but if buyers can hold their ground and prevent a significant decline, it increases the likelihood of a break above $11.81. If that happens, the pair could surge to $13.34 and then to $15. However, if the price turns down and falls below $10, it suggests that the bulls are booking profits aggressively, potentially leading to a drop to the 20-day EMA at $9.05.
Lastly, Arbitrum has been attempting to break above the overhead resistance of $1.27, but the bears have been resisting. However, a positive sign for the bulls is that they have managed to keep the price above the 20-day EMA at $1.11. This increases the possibility of a break above the resistance level, with the ARB/USDT pair potentially gaining momentum and surging towards $1.60 and eventually $1.75. However, if the price sharply declines and falls below $1.10, it could lead to a drop to the strong support level near $0.90.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and make informed decisions when it comes to investing or trading in cryptocurrencies.