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Cryptocurrency News Articles
Ethereum (ETH) Price Prediction for May 2024: Will ETH Surpass $5000?
May 21, 2024 at 11:49 pm
As the overall crypto market begins to show signs of strength, Ethereum, the largest altcoin, sees an overnight increase in price.
As the crypto market rallies, Ethereum, the leading altcoin, saw a price surge overnight. The bullish rally saw the token reclaim the psychological $3,500 mark amid rising demand and improving sentiment following the approval of the Ethereum ETF.
Further boosting Ether's bull run was the market's recovery rally, fueled by Bitcoin's surge above $70,000. So what gives? Can we expect ETH prices to cross the $5,000 threshold?
Here's a quick overview of Ethereum:
ETH Price Prediction for May 21, 2024
ETH price now stands at $3,813.68, marking a 23.79% change in the past 24 hours at 8:20 PM. The recent price action leaves the token with a market cap of $453.80B. Year-to-date, Ethereum has seen a change of 66.09%. The recent price surge comes with high volume, surging 335% in the past 24 hours.
Ethereum Technical Analysis
From a technical standpoint, Ether's recent gains come as part of a falling wedge breakout.
A falling wedge is formed as the price action unfolds within a descending channel with two converging trendlines. Typically, the pattern resolves when the price breaks above its upper trendline and rises to its peak height, as dictated by technical analysis.
Today, the price surged passed the 50-day EMA (Exponential Moving Average) as it heads toward $4000, which is expected to be the initial target of the falling wedge breakout.
Ether open interest, funding rate rise sharply
Ether's price increase coincided with a sharp rise in its open interest (OI) and funding rates.
On May 21, Ether Futures OI increased by more than $3 billion, jumping to $14.68 billion, as the funding rate reached a one-month high of 0.567% per week.
A high OI usually signifies increased investor interest and confidence in the asset, suggesting that traders are positioning themselves for potential price movements.
Meanwhile, a high funding rate indicates that more traders are betting on Ether's price rising (long positions) compared to those betting on its decrease (short positions). This suggests that traders are bullish and are willing to pay a premium to maintain their long positions.
Read also: Ethereum Hits $3,800 Milestone, Solana & Avalanche Surge
Can Ethereum Reach $5,000?
While the present market conditions favor Ethereum, reaching $5,000 will depend on several factors, including:
Overall, technical indicators and rising investor sentiment bode well for Ethereum, painting a bullish picture. However, external factors will ultimately determine whether the token can reach the $5,000 milestone.
Disclaimer:info@kdj.com
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