Ethereum’s Price Gains 50% in Just One Week: Is Altseason Starting?

Ethereum’s price recently surged by 50% within a week, drawing attention to potential signs of an altseason. Unlike retail investors, who generally lack the capital to move markets significantly, institutional investors tend to carry out extensive research before making substantial investments. This difference often leads to more informed decisions and larger market moves.

One of the key indicators often used to predict an altseason is the ETH/BTC weekly chart. The ratio between Ethereum and Bitcoin has recently dropped back to 2019 levels, and in early May, a large buying candle formed, which is typically a bullish sign. This candle, characterized as a Bullish Engulfing, suggests strong buying pressure. However, for confirmation of a sustained upward trend, Ethereum would need to reclaim the purple zone on the chart.

On the daily ETH/USD chart, large buying candles have been observed, breaking through previous highs, as well as the MA50 and MA100. However, the price faces resistance at the MA200. A Fair Value Gap (FVG) exists from the first large daily candle, aligning with previous highs and the moving averages. This confluence makes it likely that Ethereum will retrace to around $2100 before pushing through the MA200. A pullback to this level would also reset the RSI to 40-50, offering an opportunity for the price to gain more momentum for another move upward.

Looking at the 1-hour chart, further insights reveal the current price is below the MA50, with the FVG from the last bearish engulfing candle recently tested. If the price retraces slightly, it could test the MA200 on the daily chart. A break above this level could trigger a rally in many altcoins.