The saying “Sell in May, walk away” is sticking around for Ethereum [ETH] users early this year. It used to be popular in the crypto world. Analysts are already thinking about what will happen to Ethereum’s price as May approaches.
A well-known crypto analyst named Daan Crypto has taken to the X platform to look into the different situations that could happen with the rumor of an Ethereum ETF. Eric Balchunas, a senior ETF analyst at Bloomberg, said that the chances of approving an ETH ETF were 25% right now, and the decision date was set for May.
Based on what experts say, this kind of uncertainty about the decision could cause prices to fall.Analysts are looking at the market and relevant measures to decide if it’s time for investors to become bullish on the altcoin giant.
Ethereum’s Bearish Trend Signals Potential Downturn
Despite a recent higher low at $3056 on March 20th, a bearish chart pattern has emerged, hinting at a possible downturn to $2800. This outlook remains unchanged, and a breach below $3056 could prompt swing traders to lean towards selling. Technical indicators further accentuate the bearish sentiment, with the RSI hovering below the neutral 50 mark since mid-March and the CMF indicating a rising capital outflow.
The adverse chart pattern suggests that the price could fall to between $2.6k and $2.8k, but Ethereum’s leverage ratio (ELR) shows a different picture. The ELR, which measures the ratio of Open Interest to exchange reserves, went down during recent losses, which suggests that traders are pulling back from positions with a lot of debt.
The Ethereum exchange stocks have been going down since the middle of March, which is a positive sign. This could mean that holders are buying more. Over the past few weeks, the Coinbase Premium Index, which shows how much Ethereum costs on Binance and Coinbase, has been going up. This means that buyers in the United States are feeling optimistic.
The most important thing that’s going to happen soon is still the U.S. SEC’s decision on the Ethereum ETF, even though there are mixed signs. Balchunas said there were no good signs, which meant it was possible that the denial would happen. Also, buyers should be careful over the next 6–8 weeks because how Bitcoin does after the split could change the path of Ethereum.
