- Ethereum is testing a crucial $4,000 resistance level, which will decide if the bullish rally continues or faces a correction.
- The MACD indicator indicates heavy bullish momentum, as green bars identify accumulating bullish pressure and the probability of price increases.
- The bullish sentiment of Ethereum is evidenced by a growth of volumes by 62.14% to $96.26 billion, which indicates a strong interest of investors.
Ethereum is trading at a crucial resistance level of approximately $4,000. This might be the make-or-break moment, which would decide whether Ethereum would sustain the bullish run or be pulled back. Ethereum has the potential to set a new all-time high (ATH) at over $6,000 in case it manages to break successfully above $4,000. However, rejection at this point may prompt price correction, and the price may thus move back to the $3,500-$3,200 zone.
Source: X MACD is a strong indicator that favors the bull rally of Ether. The MACD, which is based on a 12-period, is now above the signal line (26 periods). This means that the immediate trend is in the positive direction.
Also Read: Ethereum Eyes $5,000 Breakout as It Tests Key $3,800 Resistance Level
The MACD histogram green bars also confirm that bullish pressure is gathering force. The technical indication implies that the price of Ether can keep climbing higher in case the momentum is maintained.
Source: TradingView The boost in the trading volume is another indicator of the soaring bullishness. According to Coinglass, the rise in the volume stands at $62.14 to reach $96.26 billion. This increase is extreme as it shows the surge in interest of investors who put increased capital into the market.
Ether has been on an upward trajectory, which is not set to decline. The open interest has spiked by 7.90% to stand at $59.94 billion. This is an indication that traders are setting themselves up to experience a better upward trend.
Source: Coinglass The Ether is now trading above the 50-day and 200-day moving averages, and they are now serving as crucial supports. The underlier has the support provided by the 50-day moving average in the short term, and the 200-day moving average, with support at $2,600, is also a strong foundation. These levels become important in case of a price pullback of an already tested resistance of $4,000.
As a significant test of ETH, the $4,000 resistance is a huge challenge. Otherwise, in case ETH cannot rise above this level, a correction may occur. In the present case, the support would be on the prices around $3,500-$3,200. However, a break past the $4,000 mark may pave the way to new heights for Ethereum. An effective breakout can send the price rising to the range of $6,000 or more.
The next big move out of Ethereum is going to be determined by overcoming the $4,000 resistance. A breakout position of this level may trigger the all-time highs. Traders must pay very close attention to the price behavior around this important level. The market remains bullish, though care should be taken in case of price rejection.
Also Read: Ethereum Faces High Volatility: Analysts Predict $4,100 Target Ahead
