Ethereum Price Poised Hit $4000 This Week Riding On This Major Factor

Ethereum price has significantly slowed down the bullish outlook witnessed on Monday, seeking support at $3,500. This downturn mirrors a similar correction in Bitcoin price to $69,000 a day after topping $72,000. Investors are expected to fill the gaps by buying the dip ahead of the Bitcoin halving. ETH price debut above $4,000 could potentially ignite a bigger rally to new all-time highs with Bitcoin anticipated to peak above $100,000 in 2024.

Bitcoin price topped $72,000 again riding on renewed interest in ETF products, which according to SoSoValue saw net outflows of $223 million on April 8. So far, the cumulative total net inflow volume has reached $12.39 billion.

Grayscale, according to data shared by reporter Wu Blockchain, posted $303 million in net outflow volume.

SoSoValue: Total net outflows from Bitcoin spot ETFs yesterday were $223 million. Grayscale ETF GBTC saw a single-day net outflow of $303 million. The Bitcoin spot ETF with the largest single-day net inflows was Bitwise ETF NYSE, with a single-day net inflow of approximately… pic.twitter.com/hmfXPrhsCh

— Wu Blockchain (@WuBlockchain) April 9, 2024

The Ethereum founder Vitalik Buterin’s speech in Hong Kong on Monday also helped to keep the ecosystem in a positive state with traders choosing to “sell short-term Bitcoin option, while Ethereum mainly to buy short-term calls,” according to Greekslive.

ETH rose 8% in 24 hours, which may be related to Vitalik’s Hong Kong activities. Greekslive noted that today the traders mainly to sell short-term bitcoin option, while ethereum mainly to buy short-term calls. But the giant whale has now stockpiled nearly 30,000 bitcoin calls…

— Wu Blockchain (@WuBlockchain) April 9, 2024

Ethereum Price Forecast Eyes $4,000 As ERC20 Tokens Soar

Tokens in the ERC20 sector of the Ethereum ecosystem have recently performed remarkably well, creating momentum even for the second-largest cryptocurrency.

Insight from blockchain data analytics platform Santiment highlighted that “ERC20 have been well ahead of the markets on average,” with the sector increasing by 8.1% in the last seven days.

Some of the tokens in this segment performing extremely well include Toncoin (TON) and Ethena (ENA). Based on CoinGecko market data, TON is up 15% in 24 hours to $6.75. Although ENA boasts a staggering 96% surge, it faces rising selling pressure to drop 4% in 24 hours to $1.24.

Meanwhile, Ethereum hovers above $3,600 support after the bullish move it exhibited on Monday waned at $3,729 – the most recent high.

The bearish outlook from the Relative Strength Index (RSI) shows that ETH could claw back the accrued gains and possibly retest support at $3,500. Note that the 20-day Exponential Moving Average (EMA) reinforces this support area in the four-hour range.

The lower the RSI drops into the neutral region, the stronger the sellers get, increasing the chances of further decline. More conservative investors may wait until Ethereum price rebounds either from $3,600 or the grey band hosting both the 50-day EMA and the 200-day EMA before going all-in in ETH for a breakout to $4,000.

More blockchain data from IntoTheBlock reveals that 94.24% of all Ethereum holders are in the money or in profit, with only 3.53% facing unrealized losses. This means that ETH price is strongly supported, suggesting that the path of least resistance is upward.

The only significant barrier runs from $3,666 to $4,811 which means if broken, Ethereum price would be on course to achieve new all-time highs.

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John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.