Ethereum Price Nears $4K Resistance, Eyes Rally to $6.85K Should This Happen

Key Insights:

• Experts predict that Ethereum’s breakout above $4K could push it into the $10K+ territory.
• Volume confirmation for Ethereum’s Broadening Wedge pattern signals a potential rally to $6,850.
• Ethereum liquidity at $3,900 shows strong buy-side interest, fueling expectations of a price surge.

Ethereum price is currently facing a crucial test near the $4,000 resistance level, a key area that has repeatedly rejected the price in the past. This resistance zone has been difficult for Ethereum to surpass, with years of price compression forming a pattern that could eventually result in a significant upward move.

According to Merlijn The Trader, Ethereum is circling the $4,000 resistance after 7 failed attempts. He suggested that if the price breaks through this level, Ethereum could swiftly move into the $10,000+ territory.

As Merlijn points out, the setup doesn’t get more obvious than this, emphasizing that the market is ready for a breakout. The ongoing price action has led many to believe that Ethereum’s momentum could soon lead to a significant rally.

Broader Wedge Breakout in Progress

Jonathan Carter, another crypto expert, pointed out that Ethereum is forming a Broadening Wedge pattern in the 3-day timeframe. He indicated that the cryptocurrency is consolidating near a key resistance zone, showing firm conviction. 

Notably, Carter suggests the wedge breakout and volume confirmation could push Ethereum’s price to targets between $4,700 and $6,850. Carter emphasized that smart money is already accumulating Ethereum in preparation for a potential rally.

Despite this, Ethereum is trading at $3,682.17 as of the time of writing, reflecting a 2.68% increase in the last 24 hours. Traders and investors are monitoring this level to assess whether the selling pressure will continue or if Ethereum will successfully break through the $4,000 resistance.

Ethereum Eyes $3,900 Liquidity

As per trader TedPillows, Ethereum liquidity is reportedly concentrated around the $3,900 mark. TedPillows suggests that it’s only a matter of time before Ethereum moves toward this level. According to the analyst’s chart, Ethereum’s price has shown strong indications that it could break through this liquidity zone.

However, this level has proven to be a significant support and resistance point, with Ethereum showing resilience above the $3,600 mark. The strong buy-side interest around the $3,900 level could signal further bullish momentum if Ethereum successfully tests and holds this range.