The approval of all 8 Ethereum ETF applications in the US is one of the most bullish signals for Ethereum.
Ethereum's increasing dominance over Bitcoin is one of the biggest indicators of an incoming price surge.
The Fibonacci retracement levels suggest some resistance targets for Ethereum at the $4,878, $5,080.60 and $6,231.83 price levels.
The approved ETFs are expected to bring more investors to Ethereum, increasing its stability and liquidity.
The crypto market has been abuzz, since the approval of all 8 spot Ethereum ETF applications in the US.
If there was ever a time in which Ethereum could outshine Bitcoin, this could be the start of said time.
As it stands, Ethereum has nothing stopping it from reaching and even breaking above its previous all-time high once again, especially in light of the softer regulatory stance on crypto from the SEC.
According to a renowned analyst on Twitter, Ethereum might be about to hit the $6,000 zone.
Here are some of the major signs to watch out for before this happens.
Blockchain Mane, a prominent trader in the crypto space recently took to Twitter to identify three long-term indicators that might be reliable pointers as to when a new Ethereum all-time high might be coming in.
Ethereum is set to outperform Bitcoin
Most of these indicators, according to the analysts have something to do with Ethereum's relationship with Bitcoin, and here they are:
One of the major indicators to watch out for, according to Blockchain Mane, would be Ethereum’s dominance compared to the rest of the market.
When the dominance of Ethereum goes up, it means that investors are starting to shift in favour of the cryptocurrency, and this could pave the way for an outperformance against Bitcoin.
Ethereum versus Bitcoin season
Blockchain Mane opined that when Ethereum starts to outperform Bitcoin, we have what is known as an “ETH season”.
The chart above shows what Blockchain Mane refers to as the ETH Dominance chart.
Blockchain Mane says that these cycles often correspond to significant developments or bullish news for each of the cryptocurrencies, and the recent ETF approvals in the US are one of the most bullish bits of news for ETH so far.
The Fibonacci retracement tool is one of the most popular technical analysis tools among seasoned traders and highlights some of the best support and resistance levels for certain assets.
Ethereum versus Bitcoin in Fibonacci retracements
Blockchain Mane says that the $ETH/$BTC chart is currently in a downtrend as shown above, but is showing signs of a reversal in favour of Ethereum.
The analyst says that one key level to watch is the 0.618 Fibonacci level, which acts as a strong support, and that a breakout above the descending channel would signal a bullish reversal.
In essence, Blockchain Mane suggests that Ethereum might be ready to rally straight up to possible resistance targets for ETH at its November 2021 all-time high of $4,878, the $5,080.60 level and $6,231.83.
One of the major benefits of these approved ETFs is how well they are set to open Ethereum up to a new cohort of investors.
Blockchain Mane says that the ETFs will "provide stability and liquidity" to Ethereum, and also push its price towards new all-time highs, similar to what happened with BTC.
Ethereum's parabolic curve
Blockchain Mane highlighted the chart above, mentioning the “parabolic curve” as shown.
He mentioned the $5080.60 and $6231.83 price levels again, emphasizing that the Ethereum chart shows a falling wedge breakout, as well as the potential for further upward movement, especially after said breakout.
In all, Blockchain Mane's analyses point to a future where if the current trend holds, Ethereum might be rallying straight up for a retest of the $5,000 mark or further up, with some of the major price targets to look out for being $4,878, $5,080.60 and $6,231.83.
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