Ethereum, the second-largest cryptocurrency by market capitalization, has maintained its $3,800 support level despite overall cooling enthusiasm in the investor community. This stability comes just before the release of the next US Non-Farm Jobs data—an economic indicator that often influences market activity, including the cryptocurrency sector. On the horizon, Ethereum could potentially eye a substantial rise in price, targeting the $4,500 mark.
On Friday, May 31, the US Bureau of Labor Statistics is scheduled to publish its monthly Non-Farm Payroll data, a key economic indicator that can influence inflation rates and overall economic momentum. This publication could have significant impacts on investment strategies across the board, including those for cryptocurrencies like Ethereum.
Ethereum’s price experienced a notable surge between May 21 and May 29, climbing by 30% to reach a new monthly high of $3,974. However, this growth was not sustained, and by May 31, the price had pulled back to $3,698—a 7% decline from its recent peak. Despite this retracement, the bullish performance over the past days is notable.
Underpinning this bullish stance is on-chain data revealing a massive 240% increase in Ethereum’s average transaction size since the approval of a related ETF, which points towards improved sentiment and increased market liquidity for Ethereum. Such dynamics often pave the way for further price increases, as they reflect a growing engagement and positive outlook from investors.
Despite facing current hurdles around the $3,800 price point, Ethereum stands at a crossroads that could lead to significant gains. If the upcoming US Non-Farm Jobs data yields a positive reaction from the market, Ethereum’s price could break the barrier and soar above $4,500 as soon as June 2024.
However, certain price resistances need to be considered. Sellers who hold roughly 3.06 million ETH purchased at an average price of $4,213 could create resistance around the $4,200 level. Should Ethereum manage to break through, though, it’s likely to venture into new record-high territories above $4,500.
With that said, investors must also prepare for alternate scenarios. A downturn below the $3,700 support could trigger a sharper decline, potentially sending the price towards the next significant support level at $3,560.
As with all investments, particularly in the volatile cryptocurrency market, players should keep a close watch on economic indicators and market signals. With the potential boost from positive economic data and increased on-chain activity, all eyes are on Ethereum as it teeters on the brink of either a bullish breakout or a bearish downturn.
