ETH/BTC Price Prediction: ETF Hype, FOMO and Ethereum Price Imminent Rally To $5,000

The Ethereum price turnaround is proving to be a huge game changer for altcoins like Solana (SOL), Dogecoin (DOGE), and XRP. Following the SEC’s approval of Ether ETFs, investors seem optimistic that the trend will continue with these altcoins and subsequently trigger a major rally in crypto prices.

Meanwhile, the ETH/BTC pair hovered at a 0.054 ratio during the US session on Monday. It seemed ready for a larger breakout but only if Ethereum gained more strength against Bitcoin, thus breaking above the resistance at 0.055.

Despite the rebound to $3,445, the technical outlook may not be convincing enough especially with resistance foreseen at $3,500, $3,600, and $3,800. Key fundamentals like the decentralized finance (DeFi) Total Value Locked (TVL), and the crypto fear and greed index reinforce the bearish grip on ETH.

The immediate support at between $3,200 and $3,300 must hold this week to prevent further losses to $3,000, considering it may be too early to rule out an extended drop to the next key level at $2,800.

ETH/BTC Price Prediction: Is Ethereum Price Gearing Up For 25% Breakout

Ethereum has in the last few weeks drastically gained against the largest cryptocurrency such that the ETH/BTC trading pair tested the inverse head and shoulder (H&S) pattern’s neckline resistance twice.

Ether bulls seem ready to continue with the uptrend above 0.055—in a move that could ignite a 25% rally to 0.069. An inverse H&S pattern is bullish and often signals the end of a downtrend and the beginning of a sustainable uptrend.

Nevertheless, the pattern remains unvalidated until the price breaches the neckline resistance. In the ETH/BTC pair’s case, this is the seller congestion at 0.055.

The Exponential Moving Averages (EMAs) add credence to the likely breakout, with the 20-day EMA holding as the immediate support at 0.05461. A golden cross on the same daily chart lingers as the 50-day EMA in red crosses above the 200-day EMA in purple.

On top of the golden cross, the Relative Strength Index (RSI) shows a lot of potential for the trading pair, holding above the midline at 50. Should the RSI close the gap to the overbought region at 70, the path of least resistance will remain upwards, further accentuating the breakout to 0.069.

What To Watch Out For In Ether Price This Week

A breakout is also looming in Ethereum price based on the technical structure backed by a soon-to-be-sent buy signal from the Moving Average Convergence Divergence (MACD) on the daily chart.

Despite the encouraging bullish outlook, ETH price holds between a rock and a hard place, with support provided by the 0.5% Fibonacci ratio and a confluence resistance established at $3,467 by the 20-day EMA and the 50-day EMA.

If the hurdle caves in, traders would push the bullish case, targeting a breakout to $4,000 this week. However, such a move will not happen in a vacuum, considering the two resistance levels at $3,600 and $3,800.

With the approval of Ethereum ETFs imminent in July, market sentiment is expected to improve exponentially and this might catalyze the rally above $4,000. The CoinGape Ethereum price prediction shows a vivid map for ETH’s recovery to the previous all-time high. It is possible Ether could debut above $5,000 reaching a new record high.