Can Ethereum Initiate a Bullish Recovery Toward $4K Soon?
ETH Price Analysis
Ethereum’s rally has come to a halt, but not all hopes for a new bull run are lost just yet.
Daily Chart Analysis
In the last two weeks, Ethereum's price has been experiencing a decline on the daily timeframe of the ETH/USDT chart. This short-term downtrend began when the cryptocurrency was rejected once more from the $4,000 resistance level. Currently, the $3,500 level is providing support and preventing the market from dropping further.
A bearish breakout from current levels could lead to a further decline toward $3,000 and the 200-day moving average located around the same area. This key area is critical; a drop lower could signal a shift in the overall trend, which may have broader implications for the cryptocurrency market.
4-Hour Chart Analysis
On the 4-hour chart, Ethereum's price appears to be rebounding from the $3,500 support zone. The price has formed a falling wedge pattern and broken above it, which is a classic bullish reversal indicator. A rise above the recent high around the $3,650 mark would increase the likelihood of a rally back toward the $4,000 resistance zone.
Moreover, with the RSI climbing back above 50%, a bullish scenario becomes much more probable. Traders and investors will be closely watching this metric as it often signals momentum changes in the market.
Outlook
While Ethereum faces significant resistance, its current position above the $3,500 support level offers some hope for a bullish recovery. Key technical indicators suggest cautious optimism as the market watches for a potential rise toward $4,000.
Stay tuned for more updates on Ethereum price analysis and market trends.
