Ether to Boost LINK, UNI, ARB Amid Bitcoin Lull

The approval of spot Ether exchange-traded funds (ETFs) on May 23 by the United States Securities and Exchange Commission (SEC) did not further boost Ether’s rally, which had seen an increase of about 25% the previous week. A bright spot was the lack of a significant sell-off following the approval, indicating that Ether bulls are not in a hurry to exit. This suggests that traders are adopting a wait-and-watch strategy regarding Ether in the short term.

In the meantime, Bitcoin experienced a climb near $72,000 this week. The bulls were unable to sustain this level, causing the price to drop below the crucial $70,000 mark. This movement indicates that Bitcoin’s price might continue to trade sideways for a while longer. The positive trends observed in both Bitcoin and Ether this week also spurred buying interest in selected altcoins, which are showing potential for short-term gains. If Bitcoin and Ether maintain their support levels, certain altcoins may continue to receive buying support.

A key question for traders is whether the technical indicators support further rallies in Bitcoin and Ether and if buyers will shift their focus to selected altcoins. To explore this, we need to examine the price behaviors of some of the top-performing cryptocurrencies.

Starting with Bitcoin, it bounced off the 20-day exponential moving average (EMA) of $66,814 on May 24. This rebound indicates a positive sentiment among traders who are buying dips. The bulls will look to push the price toward the overhead resistance at $73,777, a critical level as bears are expected to place heavy selling pressure there. A sharp drop from this resistance level and a fall below the moving averages could signal continued range-bound movements. Conversely, if the bulls hold ground at $73,777, it could enhance the possibility of a breakout, paving the way for rallies to $80,000 and then $84,000.

Despite the price briefly crossing above the downtrend line, the inability to maintain higher levels suggests bears are selling on rallies. If Bitcoin’s price falls below the downtrend line, it could trigger a decline to $66,000 and subsequently to $64,600. For bulls to retain control, they would need to bounce off the moving averages and drive the price back above $70,000, potentially rising to $72,000 and thereafter to $73,777.

Turning to Ether, it soared above $3,730 on May 21, with bulls successfully maintaining this level since then. This behavior indicates that bulls are trying to establish $3,730 as a new support level. The upward turn of the 20-day EMA at $3,452 and the overbought territory signal from the Relative Strength Index (RSI) suggest a favorable upward trend. Buyers are targeting the $3,950 to $4,100 zone, which bears are likely to defend vigorously. If bulls break through, the ETH/USD pair could skyrocket toward $4,868. If bears push the price below $3,730, it may signal a correction phase, potentially dropping to the 20-day EMA for support.

Analyzing Chainlink, the price has hovered near the crucial resistance of $17.32 over the past three days, indicating a battle between bulls and bears. The upsloping 20-day EMA at $15.96 and an RSI above 62 suggest that bulls hold the upper hand. Minor resistance lies at $18.68; surpassing this could lead to climbs to $20.74 and $22. If the price instead falls and stays below $17.32, it might imply rejection of the breakout, possibly tumbling to the 20-day EMA and then to the 50-day SMA at $14.95. The key for bulls will be a strong rebound off the moving averages to maintain momentum.

Uniswap’s recovery gained pace after buyers pushed the price above the moving averages on May 20. The pair turned down from the overhead resistance of $11.81 on May 26. If buyers can maintain levels without ceding too much ground, the likelihood of breaking past $11.81 increases, potentially driving the price to $13.34 and then $15. Alternatively, a decline below $10 could indicate aggressive profit-booking by bulls, pulling the pair down to the 20-day EMA at $9.05, delaying further upward movement.

For Arbitrum, it has been challenging to break above the overhead resistance at $1.27 due to strong bear presence. A positive sign for bulls is their ability to prevent the price from dipping below the 20-day EMA at $1.11. This may increase chances of breaching the resistance, likely propelling the price to $1.60 and eventually to $1.75. If the price turns down sharply below $1.10, it might fall towards the strong support around $0.90. The 4-hour chart showing a rebound off the 20-EMA suggests bulls are still in contention. Bears defending $1.27 aggressively could slump the price back to $1.10, where buyers have previously stepped in.

While Bitcoin and Ether have shown potential for further upside, the response of bulls at critical levels will determine the market’s direction. Select altcoins, including Chainlink, Uniswap, and Arbitrum, also exhibit promise, provided they can overcome resistance zones and maintain key support levels. Traders will need to stay vigilant and adapt to market shifts as they occur.