Ethereum is on the verge of breaking through the $4,000 mark, but it hasn’t been a smooth ride. The launch of Spot Ethereum ETFs didn’t ignite a rally as many expected, instead leading to a “sell-the-news” event. Despite this, analysts remain optimistic about Ethereum’s future.
Holding Strong at a Crucial Level
Bullish investors are keeping Ethereum’s price above a key support level of $3,200. This is crucial for maintaining momentum and pushing for a breakout.
The Analyst’s Take
Crypto analyst RLinda believes that Ethereum’s recent correction, following the ETF launch, is a temporary setback. She points to the price testing key Fibonacci retracement levels and the 200-day moving average as signs of a healthy correction.
While Ethereum dipped below $3,200, it quickly rebounded thanks to strong buying pressure. RLinda believes that holding the $3,200 support level is essential for a renewed bullish rally. If successful, Ethereum could reach the $4,000 to $4,900 range.
Overcoming Resistance
To reach these higher levels, Ethereum needs to overcome significant resistance around $3,357 and $3,540. These levels represent strong order blocks, where a large number of buyers and sellers are likely to be active.
What’s Next for Ethereum?
At the time of writing, Ethereum is trading above $3,300, having recovered from a recent dip. This puts it just above RLinda’s first resistance level.
There are two possible scenarios:
- Bullish Breakout: Ethereum could continue its upward momentum, breaking through the $3,540 resistance level. This would signal a strong bullish trend and could push the price towards $4,900.
- Consolidation: Ethereum could reverse course and drop below $3,300, leading to a retest of lower support levels. This would suggest a period of consolidation before a potential breakout.
The coming days will be crucial for determining which scenario unfolds. If Ethereum can maintain its current momentum and break through resistance levels, a move towards $4,000 and beyond seems likely.
