Ethereum
Ethereum on verge of breaking $4,000 as price tests crucial levels; analyst
Ethereum looks set to significantly break the highly anticipated $4,000 price threshold. Despite this potential, the cryptocurrency has recently fell short expectations of many enthusiasts and retail traders. The highly publicized launch of Ethereum Spot ETFs, rather than triggering a rally, turned into a classic “news selling” eventwhich leads to disappointment in the market.
However, according to a crypto analyst, the general sentiment around Ethereum remains fundamentally positiveThis optimism is largely supported by some bullish investors who continue to support the cryptocurrency and its stability at a crucial support level of $3,200.
Ethereum ready to explode
In a Tradingview article, crypto analyst RLinda provides a compelling analysis regarding Ethereum’s current performance. On the price front, Ethereum suffered a massive 11.5% correction in just two days after the launch of Ethereum Spot ETFs on July 23. While it has since recovered some of those losses, Ethereum is still in this corrective phase delineated by testing key areas of interest around the 0.5 Fibonacci retracement level and also testing the 200-day moving average (MA-200).
RLinda’s analysis highlights that this corrective test of the MA-200 caused a significant break below the critical support level of $3,200, with Ethereum price bottoming at $3,115 on July 25. However, this drop below $3,200 turned out to be a false breakout, as it triggered a strong influx of buyers which has managed to prevent further declines.
To maintain the overall bullish momentum, RLinda stresses the importance for bulls to keep Ethereum price above the $3,200 support level. If they succeed, it could pave the way for a fresh bullish rally, potentially pushing the price to break through key resistance levels and target the $4,000-$4,900 range.
“The main task of the bulls is to maintain the defense above the area of interest at $3,200. Then it remains to wait for a retest of resistance with the aim of breaking through it and continuing the bull run towards $4,000-$4,500-$4,900,” the analyst said. said.
To achieve this bullish resurgence, Ethereum would need to overcome significant resistance around $3,357 and $3,540, which are identified as strong order blocks.
Current price
At the time of writing, Ethereum is trading at $3,370, having rebounded 4.78% from a low of $3,219 over the past 24 hours. This recovery puts the cryptocurrency just above RLinda’s first resistance level of $3,357.
Ethereum’s trajectory could go one of two ways. The cryptocurrency could continue its upward momentum and test the next significant resistance at $3,540. Successfully breaking above this level could pave the way for a breakout above the order block, signaling further upside potential to $4,900. On the other hand, Ethereum could face a reversal, potentially falling back below $3,300. This would suggest a retest of lower support levels and a possible extension of the consolidation phase.
Featured image created with Dall.E, chart by Tradingview.com