Strongest Bull Market in the Last 3 Years with Ether ETF Expectation

Strong Bull Trend

Ether’s price has surged 18% in six days amid growing speculation that the US SEC will approve a spot ETH exchange-traded fund (ETF). Some investors believe it could reach the $5,000 level by the end of June.

The ongoing uptrend of Ether shows momentum as strong as it was in May 2021. Other indicators, such as the Relative Strength Index (RSI), are signaling the same and indicating immediate resistance at the $4,090 level.

What’s the opposite of “catching a falling knife”? This describes the current state of the Ether market; prices are displaying the strongest upward momentum in three years.

A week ago, long before the spot ETH ETF speculation began, CoinDesk reported the likelihood of Ether’s price bouncing off a significant bull trend line support. Since then, it has risen by at least 18% to $3,800, marking a larger-than-expected increase.

Momentum Indicator and Technical Analysis

More importantly, the momentum indicator of the second-largest cryptocurrency, which measures the 10-day rate of change in prices, has risen to 880, the highest since May 2021.

In other words, the bull trend is strong; bears looking to sell, if any, could be easily crushed. This means that calling a top right now is as risky as trying to call a bottom when an asset is experiencing a significant drop.

Investors use the momentum indicator to confirm market trends and detect divergences. A bearish divergence, when the indicator diverges from rising prices, signals bull exhaustion and a potential correction or decline.

Ether’s daily price chart shows the momentum indicator rising alongside the price, confirming the trend. The 14-day RSI has risen above the 70 level, indicating strong upward momentum. The indicator fluctuates between 0 and 100. Readings above 70 indicate not overbought conditions but strong upward momentum. Readings below 30 indicate an acceleration in price declines.

The 14-week RSI is rapidly approaching the 70 level, which has signaled previous parabolic bull runs.

SEC Decision and Expectations

The US Securities and Exchange Commission (SEC) is expected to decide this week on applications submitted by ETF giants VanEck and Ark/21 Shares. A potential launch is expected to pave the way for mainstream funds and further boost prices.

Options traders on Lyra’s decentralized market are positioning for a rise to $5,000 by the end of the second quarter. Immediate resistance is seen at the $4,090 level reached in April and then at the record price of $4,692 reached during the 2021 bull run.