Ethereum is on an upward trajectory, as indicated by the formation in the daily chart. After a period of sideways movement, the coin surged on May 26, with buyers firmly in control. This could signal the continuation of last week’s gains. The potential for further gains is evident, with a clean close above $4,100 or March 2024 highs paving the way for fresh 2024 levels.

The current state of price action reveals that buyers are in the driving seat. In the past trading day, Ethereum is up 4%. At the same time, the coin is also up 25% in the previous trading week. The leg up has seen trading volume swell to over $12 billion, according to Coingecko. It is highly likely that rising prices will draw more traders into the picture, driving participation to record highs.

The following Ethereum news events are worth watching:

• Michael Saylor, the former CEO of Bitcoin, now thinks the eventual launch of spot ETH ETFs will end up being good for BTC, legitimizing crypto as an emerging asset class.  This will be the second derivative product approved by the strict United States SEC. With two spot crypto ETFs, investors will have more confidence and options.
• Ethereum developers have set the Pectra upgrade for Q1 2025. Pectra will be a huge update for the smart contracts platform and will come after the implementation of Dencun in May 2024. The goal of Pectra is to improve Ethereum’s data availability before Osaka.

Ethereum Price Analysis

ETH/USD is sprinting higher at spot rates, closing in on $4,000.

From the daily chart, the sideways movement after May 22 is proving to a period of accumulation. Since the close above the local resistance (now support) at $3,800 is with expanding volumes, traders can look to buy the dips targeting March 2024 highs of $4,100.

Further gains above this liquidation level might force further gains toward $4,900.

Any dip below $3,600—or May 20 high—invalidates this bullish outlook.