Ethereum (ETH) Price Analysis: Can It Break $4,000?
As Bitcoin continues to hover around $96k, Ethereum’s bullish trend seems to have hit a roadblock just above $3,600. The ETH price is currently consolidating between the 20 and 50 EMA lines on the 4-hour chart, indicating a potential breakout in the near future.
The current price action suggests that a breakout above or below the EMA lines will determine the next direction for Ethereum. Let’s delve deeper into this Ethereum price analysis to understand where the price might be headed.
Looking at the 4-hour chart, ETH’s price action reveals a rising channel pattern, with the support trendline coinciding with the 100 EMA line. Despite attempts to breach the crucial resistance at $3,750, the ETH price has faced resistance, leading to a bearish reversal pattern forming.
Last night, the price retraced to $3,556 to test the 100 EMA line and the local support trendline. Currently, the price is gearing up for a bullish turnaround, challenging the 20 EMA line as it aims to resume its upward trajectory.
In terms of technical indicators, the MACD and signal lines are currently in a bearish alignment. However, the declining bearish histograms suggest a potential bullish crossover in the near future, indicating a possible reversal in the price trend.
On December 2, Ethereum spot ETFs saw a net inflow of $24.23 million, marking the sixth consecutive day of positive inflows. BlackRock’s Ethereum ETF (ETHA) led the way with a single-day net inflow of $55.92 million, followed by Fidelity’s ETF (FETH) with $19.9 million. This influx of capital reflects growing investor confidence and interest in Ethereum, with the total net asset value of Ethereum spot ETFs now standing at $11.13 billion.
As for the future price movement, Ethereum faces a critical juncture near the $3,550 support level in the next 24 hours. A bounce from this level could trigger a sharp recovery towards the $3,759 resistance, reigniting bullish momentum. The outcome of the U.S. trading session will be crucial, with increased trading volumes and positive sentiment needed to fuel an uptrend.
Failure to hold the support level could see the price retesting $3,382 in case of continued sideways action. However, a broader market recovery could propel Ethereum above $3,750, setting the stage for a rally towards $4,064.
The question remains: will Ethereum surpass the $4,000 mark in 2024? Stay tuned to Coinpedia for comprehensive ETH price predictions and market insights.