Hot News

Ethereum Price Analysis: After Breaking an Important Resistance, is $4,000 Incoming for ETH?

Key Support level: $3,600

Key Resistance level: $4,000 

Ethereum (ETH) has broken above the key resistance at $3,600 and successfully turned it into support on the 4-hour timeframe. With this breakout, the cryptocurrency has a clear path to retest the all-time high at $4,380.

The ATH will act as resistance until broken, and, therefore, profit-taking can be expected as soon as we reach a price above $4,000. This may cause a correction until ETH successfully breaks above the key resistance and enters price discovery once again.

Ethereum Price Analysis: After Breaking an Important Resistance, is $4,000 Incoming for ETH?1Chart by TradingView

Indicators

Volume: The breakout volume on the 4-hour timeframe was strong. However, we need continuation and more volume to sustain the upward trajectory.

RSI: The RSI on daily and 4h timeframes is moving higher as expected. Once the RSI makes a higher high on the daily timeframe, the confidence in this uptrend will increase.

MACD: The recent bullish cross of the MACD moving averages on the 4h timeframe is a great indicator that price is posed to increase further. On the daily timeframe, things remain bullish and in anticipation of a new rally.

Read more:  Brazil: Nominee to Lead the Securities Commission Pushes for More Control on the Crypto Markets

Ethereum Price Analysis: After Breaking an Important Resistance, is $4,000 Incoming for ETH?2Chart by TradingView

Bias

The overall bias is bullish, especially if the price remains above $3,600. With more volume and buyers coming in, ETH can continue to push higher and approach the ATH. This bias will change only if the price falls under $3,400. At that point, the current breakout would be confirmed as fake.

Short-Term Price Prediction for ETH:

With the ATH in range, ETH appears ready to retest the key resistance at $4,000. Once there, the price might consolidate in a tight range as significant pushbacks aren’t expected. Eventually, ETH can break free from the current resistance and enter price discovery. Once that happens, further increases become very likely in the near future so long the overall market stays bullish.

The above analysis was written by DU09.

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

Read more:  Plot Twist: The $600M PolyNetwork Hacker 'is Ready To Return The Funds'

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Tags: Ethereum (ETH) Price

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button