Ethereum (ETH/USD) Targets $4,000 Despite Growing Market Concerns
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Ethereum Long-term Analysis: Bullish
Ethereum on a weekly timeframe has seen mixed market Sentiments in 2024. This is characterized by notable struggle for market dominance.
However, recent price actions reflect a consistent recovery with price pushing above key resistances now facing the $4,000 psychological level.
To this end, the position of the price above the Guppy Multiple Moving Averages (GMMAs) and the formation of the bearish candlestick suggest the pair may be making a short correction towards $3,813.25, as indicators on the chart suggest an overstretched bullish momentum.
Currently, ETH/USD trades at $3,904.65 after hitting $4,008.06.
Technical Indicators
Major Resistance Levels: $4,000, $4,500, and $5,000
Major Support Levels: $3,813.25, $3,700, and $3,426.75
Ethereum Technical Analysis
The analysis of Ethereum against the United States Dollar shows that the recent bullish trend is currently facing some challenges breaking above the $4,000 psychological level. However, the spread of GMMAs indicates a more optimistic trend and active engagement by bullish traders. As a result, ETH holds potential for further gains if current momentum is sustained; otherwise, a dip below $3,813.25, would lead to a retest of the $3,426.75 support level before any rally begins.
On the other hand, the Stochastic oscillator indicates that the pair is deep into the overbought territory, with both lines reading above 97, indicating a likely decrease in momentum in the next sessions. Therefore, a crossover of the lines may be the beginning of a downtrend; otherwise, a suspension at the current level may lead to an extended consolidation phase.
ETH/USD Analysis: What to Expect
On the daily timeframe, ETH/USD continues to recover after a brief pullback while a renewed bullish interest is evident as the pair reclaims the $3,900 level.
The GMMAs suggest a strong but fragile potential uptrend, while the Stochastic RSI that reads below 30-mark level indicates an oversold condition, hinting at a potential upside rebound.
Therefore, a break above $3,987 with a heightened volume could reinforce bullish dominance. Contrarily, if the price fails to hold above $3.737, a more pronounced correction to the south may be triggered.
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