Ethereum
Analysts predict massive Ethereum surge beyond $4,000 in near future
Ethereum (ETH) saw a significant decline of around 6.60% over the past week, reaching lows near $3,100 after the launch of Ethereum Spot ETF.
Despite the recent turbulence, market analysts remain optimistic about Ethereum’s potential for substantial upside. Key indicators and technical models suggest that Ethereum is gearing up for a major rally, potentially pushing its price past the $4,000 mark.
In a TradingView job On July 27, analyst RLinda pointed out that the ETHUSDT chart shows bulls actively hold the price above a crucial level support double.
Ethereum price analysis chart. Source: TradingView/RLinda
According to the analysis, Ethereum is currently going through a corrective phase, testing crucial areas of interest, particularly the 0.5 level. Fibonacci Retracement Level and the 200 days moving average (MA-200).
This correction phase is characterized by a false breakout, a pattern often leading to significant upward movements supported by strong underlying fundamentals.
Fundamental analysis
Ethereum’s fundamental outlook is particularly positive. The recent launch of Ethereum ETFs on July 23 has gained traction, contributing to bullish sentiment in the market.
The correction seen over the last two days is mainly attributed to outflows from Grayscale, a pattern previously seen with Bitcoin (Bitcoin).
According to data According to SoSo Value, July 26 was a particularly volatile day for spot Ether ETFs, with net outflows totaling $163 million. Despite these outflows, overall sentiment for Ethereum remains bullish, supported by strong fundamentals and favorable market conditions.
Market dynamics
In addition, minor pressures due to the current situation of Mt. Gox are offset by the strengthening of Bitcoin. Transfers from BTC to Exchanges and their distribution among debtors indicates strong market support, which indirectly benefits Ethereum.
This behavior of Bitcoin, the flagship cryptocurrencyshows a favorable environment for Ethereum price action.
Key technical indicators
From a technical perspective, Ethereum is forming a correction towards the 0.5 Fibonacci retracement level of its previous bullish momentum. This is complemented by a retest of the daily MA-200.
The occurrence of a false breakout and subsequent aggressive buying signals the presence of a strong buyer base, unwilling to let the price fall below the critical $3,000 mark.
Key resistance The levels to watch are $3,357 and $3,540. If the price breaks these resistance levels, it could pave the way for a strong rally towards $4,000. psychological level.
Beyond $4,000, the next important resistance targets are $4,500 and $4,900. Support levels are critically positioned around $3,200 and the MA-200.
The primary objective of Ethereum bulls is to maintain defense above the $3,200 area of interest. Holding this support level is essential to set the stage for a possible upside breakout.
Ethereum Price Analysis
As of the latest update, Ethereum is trading at $3,249, reflecting a 0.66% decline on the daily chart.
The combination of strong technical signals and supportive fundamentals, despite recent ETF outflows, indicates a high probability that Ethereum will reach and surpass the $4,000 mark, potentially targeting $4,500 and beyond.
Investors should watch for sustained support above $3,200 and a breakout of key resistance levels to confirm the next bullish phase.
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