- Ethereum’s bullish momentum could lead to a new round of growth to $4.5k – $5k
- However, a pullback to $2.9k or $3k might happen first before a second phase of growth by Ethereum
- Ethereum usually outperforms Bitcoin in the month of May increasing the chances of additional growth
The second most valuable digital asset of Ethereum (ETH), has broken the $3k ceiling with incredible momentum and posted a new all-time high of $3,527.
However, and according to market analysis by the team at Crypterium, Ethereum will most likely undergo a short-term pullback as a result of a head and shoulders pattern on the 4-hour chart. Additionally, several indicators are also pointing towards an overbought scenario.
An excerpt of their analysis can be found below.
Sellers began to put pressure on the market when the chart approached the $3,400 — $3,500 range. They pushed the price down to the $3,200 level…All this led to the formation of a head and shoulders pattern, which is a classic uptrend reversal pattern.
…a correction in the Ethereum price is now more likely than a new round of growth. We expect to see the price decline [to] the $2,900 — $3,000 range. The Bollinger average line comes into the same range, to which the price often descends after strong growth.
ETH’s Pullback Will Be Temporary, Leading to a New Round of Growth to $4.5k – $5k
The analysis goes on to conclude that the pullback to the $3k range will be temporary as Ethereum is poised for a new round of growth towards $4,500 or even $5,000.
Ethereum Usually Outperforms Bitcoin in May
The journey to $5k is possible given that Ethereum has outperformed Bitcoin in the first two quarters of each year since 2016. Furthermore, the month of May is usually a big one for Ethereum as highlighted by Timothy Peterson of Cane Island Alternative advisers through the following statement and accompanying chart.
Ethereum outperformed bitcoin last month by nearly 50%. ETH has *always* outperformed BTC in May.