Ethereum nears $4K resistance after a strong rally, with analysts eyeing breakout or reversal as key short-term price tests loom.
What is the Current Price Action of Ethereum?
Ethereum is nearing a key price level after weeks of sustained gains. Since mid-July, the digital asset has surged from about $3,050 to just under $4,000, establishing one of its strongest rallies in recent months.
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Analyst Scient on X noted that Ethereum is the strongest asset in the market and suggested the current move is following a short-term plan. He added that the price could briefly surpass $4,000 before a potential reversal, outlining plans to sell half of his long-held position between $4,000 and $4,300.
Price Action and Key Levels
Price moves show Ethereum peaked near $3,970 in late July before retreating into the $3,420–$3,480 demand zone. Buyers stepped in at this level, pushing the price above mid-range resistance around $3,745–$3,820, confirming continued bullish momentum.
The next key resistance is at $4,074, with major zones higher at $4,374 and $4,534. If Ethereum sustains a move above $4,074, charts suggest the price could target the $4,374–$4,534 range.
However, this upper range is expected to attract heavier selling pressure. Analysts warn this could form a double top pattern, which often suggests a reversal in trend. Should that occur, a pullback toward $3,820 or possibly $3,600 may follow.
Analyst Views on Short and Long Term Prospects
Michael van de Poppe compared Ethereum’s $4,000 price levels in 2021, December 2024, and the current market. He noted that in 2021, Ethereum was overpriced, while in December 2024, it was likely fair value. Currently, he pointed to factors such as stablecoin growth, ETF staking, and U.S. regulatory approvals as supportive elements.
Van de Poppe indicated that a move toward $6,500–$8,000 could align with fair market valuation in the long term. However, he cautioned that the asset has risen 90% in less than a month, increasing the risk of a short-term stall.
Final Outlook
Analysts note the $4,074 breakout level and the $4,374–$4,534 supply zone as key points for short-term market direction. A decisive move beyond $4,534 could lead toward $4,700 and beyond, while rejection at upper resistance may lead to deeper retracements.
Frequently Asked Questions
What are the key resistance levels for Ethereum?
The key resistance levels for Ethereum are at $4,074, with major zones at $4,374 and $4,534.
How does Ethereum’s price compare to historical levels?
Ethereum’s current price levels are being compared to its performance in 2021 and December 2024, indicating a significant rise in value.
Key Takeaways
- Ethereum’s Rally: Ethereum has surged from $3,050 to near $4K, indicating strong market momentum.
- Resistance Levels: Key resistance is at $4,074, with potential for further gains if broken.
- Market Sentiment: Analysts are cautious about a possible reversal if selling pressure increases.
Conclusion
In summary, Ethereum’s approach to the $4K resistance level highlights both potential for significant gains and risks of a market reversal. As analysts continue to monitor key price levels, the outlook remains cautiously optimistic.
Source: https://en.coinotag.com/ethereum-approaches-4k-resistance-analysts-consider-breakout-or-potential-reversal-amid-key-price-tests/