The recent surge in ETH price from its interim lows of around $3,300 has effectively nullified any bearish trajectory that could have pushed the token below $3,200. With the levels holding strong at $3,500, Ethereum seems to be gearing up for a potential upward trend. Additionally, the inflow into ETH ETFs has been positive, indicating a growing confidence among institutions and market participants.
The ETH ETFs have witnessed a consistent inflow over the past week, with more than $200 million flowing in compared to Bitcoin. This influx of capital into Ethereum showcases a rising belief in the potential of ETH. If the current momentum persists, it could lead to significant gains in the near future. The breaking of crucial resistance levels suggests a promising outlook for the Ethereum price rally.
The ETH price has now surpassed the psychological barrier at $3,500, with technical indicators pointing towards a potential rise to $4,000. The RSI is trending within a rising parallel channel and is on the brink of testing the upper threshold. This gradual ascent indicates the possibility of sustained growth, with $4,000 within reach. Furthermore, the upcoming ‘Golden Cross’ further supports the bullish sentiment.
Looking ahead, the question arises: where will the ETH price head after surpassing $4,000? The current bullish momentum, coupled with increasing volume and spot ETF inflows, is likely to propel the price higher. Traders are eagerly anticipating Ethereum’s ascent to $4,000, but what lies beyond this milestone remains uncertain.
Data from Coinglass suggests that traders are cautious about the Ethereum price rally post $4,000, as over a billion shorts have accumulated near this level. If the price breaks through these levels, these shorts could face liquidation, leading to significant selling pressure on the token. In such a scenario, a pullback to the resistance-turned-support levels around $3,800 may occur.
Should the bulls manage to initiate a rebound, Ethereum’s price is poised to reclaim $4,000 and potentially reach a new all-time high. However, failure to break above this level could result in the token consolidating below the range, although current market conditions make this outcome seem unlikely.
In conclusion, Ethereum’s price rally holds promise for further gains, but traders should remain cautious of potential pullbacks and market dynamics post $4,000. With a bullish outlook and positive market sentiment, Ethereum’s journey towards new highs remains an exciting prospect for investors.