Ethereum (ETH): Is $4,000 Still Possible?

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As a seasoned crypto investor with battle-scars from the 2017 bull run and the infamous 2018 bear market, I’ve learned to keep my cool during market fluctuations. The recent rejection at Ethereum’s $4,000 resistance has given me a familiar sense of deja vu – it feels like we’re dancing around this level again.

As a researcher, I recently observed an effort to surpass Ethereum’s significant psychological barrier of $4,000, a key level that significantly impacts its performance. While Ethereum has been consistently climbing since November, the immediate direction of this digital asset is uncertain due to the recent rejection at $4,000.

At the moment, Ethereum (ETH) is approximately valued at $3,915, slightly short of the desired $4,000 mark. The price trend shows a robust bullish pattern, characterized by progressively higher lows and highs in its movement. However, a significant selling pressure is hinted at, as the attempt to reach $4,000 was rejected. This could potentially lead to a brief pullback before resuming the uptrend again.

If Ethereum fails to reach $4,000 during its next attempt, it’s essential to monitor the area around $3,610 closely. This level is near the 26 Exponential Moving Average (EMA) on the daily chart and has consistently acted as a reliable dynamic support throughout this upward trend.

If Ethereum falls below its current support at around $4,000, it could potentially drop to the $3,217 zone, a critical area marked by the 50 EMA. This move might be facilitated if it breaks through $4,000. Such a breakout could signal a surge toward the psychologically significant level of $4,300, which has also been a resistance point in previous price movements. Beyond that, a further rally could potentially reach $4,500, representing a more optimistic outlook.

Despite signs suggesting a potential deviation, the Relative Strength Index (RSI) on the chart remains within bullish territory. This could potentially lead to a brief market adjustment, as it shows that while the upward trend is still evident, its strength seems to be weakening. The decreasing volume levels also hint at reduced involvement, which may impact Ethereum’s ability to grow if current demand doesn’t increase significantly.

Even though Ethereum’s current trend remains positive, its failure to surpass $4,000 underscores the significance of this resistance level. For the bullish trend to persist, the $3,610 support will be crucial. A breach of $4,000 could indicate a significant upward surge. Traders should closely monitor price fluctuations near these critical points.

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2024-12-13 17:05