Ethereum has been making significant strides in the cryptocurrency market, currently trading around $3,860. The recent price action has shown strength as it reclaimed key support levels near $3,600 and is now forming a bullish structure with higher lows. This suggests that momentum may continue to build towards the $4,000 resistance level. Various factors are influencing the short-term price movement of Ethereum, including growing ETF inflows, strong on-chain activity, and the overall direction of the Bitcoin market.
If Ethereum can decisively break above the $4,000 mark, it may target levels between $4,300 to $4,500. However, failure to hold above $3,600 could potentially trigger a pullback towards $3,400 in the near term. Despite these potential challenges, the overall outlook for Ethereum remains positive.
As Ethereum celebrates its 10th anniversary, the token remains highly undervalued compared to Bitcoin. The strategic ETH reserve has surpassed $10 billion, backed by 65 entities, marking a significant milestone for the platform. This milestone has been reflected in the price of ETH, which has been maintaining an ascending consolidation pattern since surging above $3,800.
The bullish sentiment surrounding Ethereum suggests that the price is primed to break the barrier at $4,000 in the near future. The weekly chart of Ethereum indicates that the price is testing a pivotal trend line, similar to previous highs in Q4 of 2024. The current trade conditions favor the bulls, with indicators such as the supertrend flipping bullish and the weekly CMF showing consistent inflows of liquidity.
With the dominance of altcoins, particularly Ethereum, on the rise, market sentiments are bullish. A weekly close above the pivotal resistance at $3,914 could pave the way for a sustained rise above $4,000 and potentially set a new all-time high for Ethereum. Overall, Ethereum’s price outlook remains positive as it continues to show strength and resilience in the cryptocurrency market.