Ethereum's price has surged past the $4000 mark, but can it continue its upward trajectory to reach $4500?Ethereum (ETH) has recently shown strong price performance, continuing its upward momentum and successfully breaking through the $3880 resistance level. While its gains haven't matched Bitcoin's, it still demonstrates robust market vitality
Ethereum's price has surged past the $4000 mark, but can it continue its upward trajectory to reach $4500?
Ethereum (ETH) has recently shown strong price performance, continuing its upward momentum and successfully breaking through the $3880 resistance level. While its gains haven't matched Bitcoin's, it still demonstrates robust market vitality. Bullish pressure propelled ETH beyond resistance levels of $4050 and $4080, reaching a recent high of $4107 before a subsequent pullback. During the correction, the price touched a low of $3946, but has since rebounded.
Significantly, ETH's price has broken above the 23.6% Fibonacci retracement level of the $4107 high to $3946 low. Currently, the price remains above $4000 and is trading above the 100-hour simple moving average. An important bullish trendline has formed on the ETH/USD hourly chart, with support around $3940, providing strong support for buyers.
However, from an upside perspective, the price faces some resistance around $4025. The first major resistance lies near $4070, corresponding to the 76.4% Fibonacci retracement level of the downward movement from the $4107 high to the $3946 low. Currently, the main resistance cluster is centered around $4120.
If ETH successfully breaks through the $4120 resistance, further upward momentum is likely, with a potential target price of $4250. If the $4250 resistance is also breached, a stronger upward trend could unfold over the next few trading days, potentially pushing Ethereum's price to $4350 and even challenging the $4500 level.
Nevertheless, market volatility remains a significant factor, and ETH's future price trajectory is not guaranteed. Failure to break through the $4120 resistance could lead to another price decline. In a downward scenario, initial support would be found near $3980, with the first major support level at $3940.
A break below the $3940 support could trigger a further drop to the $3880 support level. If the bearish trend continues, the price could fall to $3800 in the short term. The next key support level is at $3750. This means that if bullish pressure isn't strong enough to overcome the $4120 resistance, bears could dominate, causing a price correction.
Currently, ETH's price trading above $4000 suggests relatively strong bullish momentum. However, investors should closely monitor the critical resistance at $4120 and the key support at $3940. A break above or below these levels will significantly impact ETH's future price movement. Investors should adjust their investment strategies according to market changes and carefully manage risk.
Technical indicators show some positive signals, such as breaking through the Fibonacci retracement level and remaining above the 100-hour simple moving average, suggesting a higher probability of price increases. However, technical indicators cannot fully predict market trends; investors should combine fundamental analysis and risk management strategies in their investment decisions.
In summary, Ethereum's price is currently at a crucial juncture. Breaking above $4120 would signal the start of a further upward trend, while a fall below $3940 could trigger a deeper correction. Investors should closely monitor price movements and adjust their investment strategies according to market changes to minimize risk and capitalize on potential opportunities. Market volatility risk persists; investors should invest rationally and avoid blindly following the crowd. Accurate market prediction is extremely difficult; the above analysis is for reference only and does not constitute investment advice.
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