Ethereum has been on a bullish streak lately, with prices surging by over 4.6% in the past day to hit a peak of $2,634 before experiencing a slight pullback. This upward momentum is in line with the overall positive sentiment in the crypto market, with the prominent altcoin recording significant price leaps over the past month, resulting in a total gain of 61.92% during this period. However, analysts believe that Ethereum is now gearing up for a major test at the $4,000 price level, a crucial point that could either confirm or invalidate the current uptrend.
According to OKC partner and crypto analyst Ted Pillows, Ethereum’s journey to $4,000 is a significant milestone that could ignite a mega rally for the altcoin. Pillows points out that $4,000 has historically been a strong resistance level for Ethereum, with the altcoin facing rejection three times at this price point in 2024. Despite the overall bullish trend in the market, ETH’s ability to break through this barrier will be a key indicator of its long-term profitability. If the bulls manage to sustain the current momentum, another encounter with the $4,000 resistance level seems likely.
For Ethereum to solidify its position in the ongoing crypto bull run and altseason, it must successfully surpass $4,000 and establish this level as a strong support zone. This move could pave the way for further price gains, with bullish targets potentially reaching as high as $12,000. However, a failure to break above $4,000 could lead to a price correction, with the possibility of ETH dropping to around $1,700 in alignment with the lower boundary of the symmetrical triangle.
Institutional interest in Ethereum continues to grow, further bolstering the altcoin’s market outlook. UK-based investment manager Abraxas Capital recently disclosed that it now holds 257,165 ETH, valued at $655 million, following a series of accumulation efforts. This influx of institutional investments serves as a strong bullish signal for Ethereum, indicating a sustained demand from traditional financial players with substantial liquidity. At the time of writing, Ethereum is trading at $2,490, reflecting a 6.95% gain over the past week.
Overall, Ethereum’s journey towards $4,000 represents a critical juncture for the altcoin’s future trajectory. With institutional interest on the rise and market sentiment remaining positive, all eyes are on whether ETH can overcome this significant resistance level and pave the way for further price appreciation. Stay tuned for more updates on Ethereum’s price movements and market developments.