As an experienced analyst, I believe that the recent approval of spot Ether ETFs by the US SEC has significantly impacted the Ethereum ecosystem, leading to a strong price rally for Ethereum and several altcoins. The surge in Ethereum’s price has triggered fresh momentum in other Layer-2 coins like Uniswap, Arbitrum, and Chainlink, resulting in impressive gains for their respective native tokens.
As a crypto investor, I’ve noticed an exciting development last week when the US SEC gave its approval for spot Ether ETFs. After this announcement, Ethereum (ETH) and its related altcoins took a breather, consolidating before igniting a powerful price rally. By Sunday, May 26th, ETH surged to an impressive $4,000 mark, boosting its weekly gains beyond 28%. In contrast, Bitcoin (BTC) has been struggling to regain the $70,000 mark and has faced continuous downward pressure. However, Ethereum’s rally seems to have sparked renewed energy in Layer-2 coins and other altcoins, potentially leading to a robust upward trend.
Uniswap Price Rally
Over the past week, Uniswap, the decentralized exchange built on Ethereum blockchain, has seen significant action. The value of Uniswap’s native cryptocurrency, UNI, has surged by an impressive 41% during this period. Currently, UNI is priced at $11.01, and its market capitalization stands at a substantial $6.59 billion.
On May 26, the UNI/USDT exchange rate encountered resistance at the level of $11.81. Yet, if buyers persist in their holdings without surrendering significantly to sellers, the likelihood of breaching $11.81 will grow stronger. If this hurdle is overcome, the pair may ascend to $13.34 and subsequently reach $15.
If the price drops below $10, it’s a sign of substantial profit-taking by the bulls. This selling pressure might cause the pair to slide towards the 20-day moving average at $9.05, delaying any potential price increase.
Photo: TradingView
Arbitrum
Together with Ethereum, the Layer 2 solution Arbitrum has experienced substantial growth of 28% over the past week. Moreover, there’s been significant buying pressure in the last 24 hours, causing the price of Arbitrum (ARB) to surge by an extra 12% and surpass $1.25. Additionally, the daily trading volume has significantly increased by 113%, reaching a staggering $850 million.
Despite a few setbacks, the bulls have managed to keep the price above their 20-day Exponential Moving Average (EMA) at $1.11. This improvement increases the chances of breaking through the resistance level. Should they be successful, the ARB/USDT pair could regain momentum and potentially escalate toward $1.60, and even reach as high as $1.75.
As a crypto investor with an optimistic viewpoint, I believe the current price trend will hold. However, should the price take a significant downturn and dip below $1.10, there’s a risk that it may plummet further towards strong support around $0.90.
Photo: TradingView
Chainlink
In the world of alternative cryptocurrencies, Oracle service provider Chainlink (LINK) stands out as a significant contender. Lately, the value of LINK has been fluctuating near the important resistance mark of $17.3 for the past three days, with bulls and bears engaged in a close battle over its price direction.
As an analyst, I’ve observed that the 20-day Exponential Moving Average (EMA) of the LINK/USDT pair sits at a level of $15.96, which is inclined upward. Additionally, the Relative Strength Index (RSI) has risen above 62. These indicators suggest that the bulls are currently in control of the market trend.
Photo: TradingView
If the price fails to hold above $17.32 after a breakout and instead falls, it’s a sign that the market is unwilling to sustain this new level. The pair may then drop down to the 20-day moving average (MA) for further potential declines, reaching the 50-day MA at around $14.95.
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2024-05-27 15:30