Will Ethereum Price Climb to $4K After Reaching $3K?

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As a seasoned crypto investor with over a decade of experience in this dynamic market, I’ve learned to navigate through the turbulent seas of digital assets with a mix of caution and optimism. The recent surge of Bitcoin towards $93K has indeed been impressive, but it’s Ethereum that has caught my attention lately.

Although Bitcoin has climbed up to around $93K, Ethereum‘s price hasn’t experienced a significant surge like several other altcoins such as Dogecoin (DOGE), Solana (SOL), Floki (FLOKI) and so forth. However, Ethereum has successfully breached the $3K psychological barrier, making it more likely for it to ascend further and potentially revisit $4K.

However, can Ether deliver on these prospects? This piece delves into the positive outlook for Ethereum and previews what investors might encounter come Monday, given that Bitcoin’s current price trends indicate optimistic indicators.

Ethereum Price Analysis: Will ETH Hit $4,000?

The price of Ethereum suggests it may experience a temporary decrease after falling short of reaching the significant barrier at $3,141. Even though there was an initial surge beyond this resistance, the absence of strong buying pressure or profit-taking caused the value to stabilize below it. This unsuccessful attempt could lead to a brief correction, giving bulls the chance to regroup before making another upward move.

The Relative Strength Index (RSI) is starting to drop back towards its average value of 50, having previously moved beyond the overbought zone. Similarly, the Awesome Oscillator (AO) is showing decreasing red bars approaching a neutral level of 0. These technical indicators suggest that bullish energy may be diminishing. If RSI and AO fall below their respective averages of 50 and 0, this could suggest a change in the market trend, potentially favoring bearish movements.

Should such an event transpire, the price of ETH might significantly drop towards the significant support point of $2,780. This level could potentially prevent further decline and offer an opportunity for investors who have been on the sidelines to purchase Ether. A surge in buying activity at this stage could potentially push Ethereum, the second-largest cryptocurrency by market cap, to revisit its previous resistance level of $3,141. If the daily candlestick manages to close decisively above this mark, it would suggest a breakout and create possibilities for a 10% upward movement, potentially reaching $3,443 or even $3,500.

Based on current buying activity and investor feelings, it’s possible that Ethereum price might surge past the temporary obstacle at $3,500, reaching the significant milestone of $4,000. In total, this increase represents a 43% jump from the support level at $2,780.

Looking at the 46% increase that occurred from November 4 to 12, it’s not unreasonable to expect a similar movement in Ethereum prices.

From a technical perspective, the optimistic view seems valid, but it’s crucial to also examine on-chain indicators. For instance, according to Santiment, the 30-day Market Value to Realized Value (MVRV) ratio reached a yearly peak of 22.57%. This level was previously attained in March 2024, when ETH reached a local peak. If past events mirror the current scenario, then ETH might be due for a correction, aligning with the short-term outlook as suggested earlier.

If Ethereum’s price drops and reaches the $2,780 support point, but buyers don’t appear to buy, this could indicate that there’s not enough demand. This situation would contradict the bullish view and potentially cause Ethereum’s price to plummet towards the $2,500 support level.

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2024-11-18 17:03