Amid the bullish season in altcoins, the second-biggest cryptocurrency, Ethereum (ETH) surpassed a crucial resistance mark of $3800 with a 6.4% hike in the last 24 hours, according to the CoinMarketCap.
Ethereum (ETH) Targets $4000 With Growth In Layer-2 Adoption
The cryptocurrency appears poised for a potential surge towards the $4,000 mark based on its recent price performance. Currently, trading at around $3,831 with an impressive market capitalization of $461.61 billion, ETH has shown strong upward momentum, supported by many bullish indicators.
One notable factor is its recovery above key moving averages. A major signal is the formation of a “golden cross,” where the 50-day EMA has crossed above the 200-day EMA, often seen as a bullish sign that attracts further buying interest.
Furthermore, the cryptocurrency remains above the 21-day EMA, acting as dynamic support during this rally.
Trading volumes have also risen steadily compared to the bearish months earlier this year. This shows growing investor confidence and interest–critical factors for Ethereum’s push toward $4,000.
However, challenges remain. The Relative Strength Index (RSI) is approaching overbought territory at 65, which could trigger short-term pullbacks and consolidation. The resistance level near $3,7000 might also pose an obstacle before Ethereum can attempt a higher breakout.
All in all, Ethereum remains positive after growth in the layer-2 scaling solution’s adoption and DeFi applications. On the flip side, if momentum falls short, Ethereum could retest lower support levels around $3,300 or even $3,000.
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Source: https://www.cryptonewsz.com/ethereum-breaks-3800-mark-4000-the-next-stop/