A recent attempt was made to break Ethereum’s psychological resistance of $4,000, a crucial level that is fundamental for the asset’s performance. Although Ethereum has been steadily rising since November, the asset’s short-term trajectory is called into question by this rejection at $4,000.
The current price of ETH is about $3,915, which is just below the target of $4,000. A sound bullish structure with higher lows and higher highs is evident in the price action. Strong selling pressure, however, is indicated by the rejection at $4,000, which may cause a brief retracement before another upward move.
The most important support level to keep an eye on if Ethereum is unable to recover $4,000 in the upcoming attempt is approximately $3,610, which is in close proximity to the 26 EMA on the daily chart. Throughout the current uptrend, this level has served as a dependable dynamic support.
Ethereum may be vulnerable to additional drops toward the $3,217 zone, a crucial area indicated by the 50 EMA if it breaks below this support. Breaking through $4,000 could pave the way for a rally toward $4,300, which is psychologically significant and in line with prior price action resistance. The next target after that is $4,500, which is an even more bullish milestone.
Although there are indications of possible divergence, the chart’s RSI indicator is still in bullish territory. This could increase the chance of a short-term correction by indicating that although the upward momentum is still present, it is waning. The volume levels also point to a decline in participation, which might affect ETH’s capacity to rise in the absence of new demand.
Although Ethereum’s structure is still bullish, the fact that it has not broken $4,000 highlights how crucial this resistance level is. For the bullish momentum to continue, the $3,610 support will be essential, and a break of $4,000 might signal a major leg up. Around these crucial levels, traders should keep a careful eye on price movement.
Read the full article here
