At the beginning of May we saw an explosive rise in the Ethereum (ETH) course. From around $ 1,800 the value shot up towards a local peak of $ 2,700. That is still a lot lower than at the start of the year, but according to analyst Nancy Lubale we can quickly go through to $ 4,000.
Bullish breakthrough ETH is approaching
First, the analyst points to a classic Bull Flag pattern. This is a technical formation that is characterized by a sharp rise followed by a downward consolidation phase in the form of a falling flag. As soon as the course breaks out above the flag, this pattern often predicts a powerful continuation of the upward trend. In Lubale her case, she expects a price of $ 4,000, which amounts to a possible increase of 57% from the current level.
What reinforces the technical analysis is the increased activity on the Ethereum network.
Lubale indicates that the number of daily transactions in the past month increased by no less than 37%. The average transaction costs also increased sharply and reached a 3-month high point of 0,0005 ETH on 22 May (around $ 1.33). In addition, the Total Value Locked (TVL) is also on the rise, according to Data from Defillama. In just 30 days, the total value that is fixed in Ethereum-Smart contracts rose from $ 45 billion to more than $ 65 billion.
The platform thus maintains its dominant position as the largest defi-ecosystem with 54% market share, far for Solana (SOL). These are all signs that more use is made of the network, for example for decentralized finance (Defi).
Furthermore, the American Ethereum spot Exchange-Traded Funds (ETFs) saw significant entering over the past six days. The day before yesterday, jumped out with an above -average inflow of no less than $ 110.5 million. Investors also show signs of life again at traditional stock exchanges.
Donald Trump disrupts Momentum
Yesterday the party was disturbed by Donald Trump. The US President pushed the stock and cryptomarkt down hard by imposing the European Union import tariffs of 50%.
The Ethereum course fell from $ 2,650 to a low of $ 2,500, but is now at $ 2,550.
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Source: https://newsbit.nl/ethereum-koers-kan-naar-4-000-terwijl-netwerk-ontwaakt/
