On May 23, the U.S. Securities and Exchange Commission (SEC) approved an Ethereum spot exchange-traded fund (ETF), but it failed to extend the Ethereum rally, which rose about 25% last week. A positive sign is that regulatory approval has not triggered the selling, which is a sign that ETH bulls are not rushing for the exit. This means traders appear to be in wait-and-see mode.
Meanwhile, Bitcoin (BTC) rebounded near $72,000 this week, but its gains failed to sustain higher levels. The price began to decline and fell below the psychological level of $70,000. This indicates that the sideways price trend may continue.
Positive movements in Bitcoin and Ethereum this week have sparked buying in some promising short-term altcoins. Some altcoins could receive buying support if the market respects the support levels of Bitcoin and Ethereum.
Does it technically support further rises for Bitcoin and Ethereum? Will buyers ever choose altcoins again? Let’s study the top five cryptocurrencies that look promising on the charts.
Bitcoin Price Analysis
Bitcoin rebounded above the 20-day exponential moving average ($66,814) on May 24, indicating that sentiment has turned positive and traders are buying on the dip.
The bulls will attempt to push the price up to the overhead resistance of $73,777. This is an important level to watch out for, as the bears are expected to defend strongly. If the price declines sharply from $73,777 and plunges below the moving average, it is a sign that the range-limiting action could continue for some time.
On the other hand, if the bulls do not give up much of the range at $73,777, the chances of a breakout will increase. The BTC/USDT pair may try to rise to $80,000 and then to $84,000.
Buyers have pushed prices above the downtrend line but are struggling to hold them higher. This suggests that the bears are not giving up and are selling into the rally. If the price slides below the downtrend line, it could fall towards $66,000 and then towards $64,600.
For the bulls to maintain their advantage, they will need to start a rebound from the moving average and push the price above $70,000. That could push the pair up to $72,000 and later $73,777.
Ether Price Analysis
Ethereum (ETH) surged above $3,730 on May 21, and the bulls have kept the price above the breakout level ever since. This shows that the bulls are trying to turn the $3,730 level into support.
The 20-day EMA ($3,452) is starting to rise and the RSI is in overbought territory, indicating that the path of least resistance is to the upside. Buyers will try to push the price to the $3,950 to $4,100 range. Sellers are expected to defend this area with all their might, as the ETH/USDT pair could soar to $4,868 if the bulls win.
Alternatively, a decline below $3,730 would suggest that a correction will begin. The pair may fall towards the 20-day EMA, which could act as a strong support level. If the price bounces off the 20-day EMA, the bulls will make one more attempt to resume the uptrend.
Looking at the 4-hour chart, the moving averages are trending upward and the RSI is near overbought territory, a sign that the bulls have the upper hand. Buyers will try to further strengthen their position by pushing the price above $3,950. If successful, the pair could rise to $4,100.
The bears likely have other plans. They will try to push the price below the 20-EMA. Doing so could encourage profit booking by short-term bulls. The price may fall to $3,730 and then towards the 50-SMA. Anything below this level will tip the scales in favor of the seller.
Chainlink Price Analysis
Chainlink (LINK) has been trading near the important overhead resistance level of $17.32 over the past three days, indicating a scuffle between bulls and bears.
The bullish 20-day EMA ($15.96) and RSI above 62 suggest that the bulls are in control. There is some resistance at $18.68, but if the bulls clear this hurdle, the LINK/USDT pair can move to $20.74 and then to $22.
Contrary to this assumption, if the price falls and remains below $17.32, it means that the market has refused to break out. The pair may decline towards the 20-day EMA and then towards the 50-day SMA ($14.95).
The bulls are struggling to hold the price above the breakout level of $17.32, suggesting that the bears are active at higher levels. The price has reached the moving average on the 4-hour chart, which is an important level to keep an eye on. If the price rebounds strongly from the moving average, the bulls will try to push it back up to $18.68.
Conversely, a break below the moving average would be a sign that the uptrend is losing steam. The pair could then fall to the important support level of $15.44.
Related: Ethereum Up 5% in 24 Hours: Approval Pump Starts After ETF?
Uniswap price analysis
Uniswap’s (UNI) recovery gained momentum after buyers pushed the price above the May 20 moving average.
The UNI/USDT pair was rejected at the overhead resistance of $11.81 on May 26, but a decline above $11.81 becomes more likely if buyers do not give much to the bears. If that happens, the pair could surge to $13.34 and then $15.
Conversely, if the price declines and falls below $10, it means the bulls are aggressively taking profits. This could lead to a decline towards the 20-day EMA ($9.05) and delay the start of the next upward leg.
The pair was rejected at $11.81, indicating that the bears are fiercely defending the level. On the downside, the first support level to watch out for is the 20-EMA. A strong bounce from this level suggests that sentiment remains positive and traders see the pullback as a buying opportunity. This could increase the chances of a break above $11.81.
Conversely, if the price declines and falls below the 20-EMA, it is a sign that the bullish trend is losing strength. The pair may then collapse towards the 50-SMA.
decision price analysis
Arbitrum (ARB) has been attempting to break through the $1.27 resistance level over the past few days, but the bears have held the position.
However, a small positive for the bulls is that they did not allow the price to fall below the 20-day EMA ($1.11). This increases the chances of a breakout above the resistance line. If that happens, the ARB/USDT pair is likely to gain momentum and surge to $1.60 and eventually $1.75.
This bullish view will be invalidated in the near term if the price declines sharply and falls below $1.10. This could push the price down to strong support near $0.90.
Looking at the 4-hour chart, we can see that the pair has bounced sharply from the 20-EMA and has reached overhead resistance at $1.27. Bears are expected to defend this level, but if bulls prevail, the pair could accelerate towards $1.40.
If you want to stop the downtrend, you need to actively defend the $1.27 level and push it below the 20-EMA. If that happens, the pair could fall to a strong support level of $1.10, where buyers are likely to intervene.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.