The cryptocurrency Ethereum (ETH) is nearing a pivotal price movement, with analysts and market enthusiasts anticipating a potential surge toward the $4,000 mark. Following a period of consolidation and a notable rally in recent months, Ethereum’s price action has reached a critical point, suggesting further upward momentum.

Recent market insights suggest Ethereum is close to completing its consolidation phase. The cryptocurrency is currently trading around $3,460, with a temporary resistance level at $3,500.

This upward trend is driven by several factors, including growing institutional interest in Ethereum spot ETFs. Yesterday, ETH experienced significant outflows exceeding $77 million from ETFs, briefly pulling its price lower, as reported by Farside. However, based on the current charts, an imminent price increase could propel Ethereum to the $4,000 level.

Source: Farside

Recent price movements have confirmed that Ethereum has established a lower range, with an interim target of $3,500 for now. However, it’s unlikely that the price will experience a significant upswing until it reaches this resistance level.

In the meantime, long-term price trends suggest that Ethereum may remain below the $4,000 threshold for several months. On the weekly chart, Ethereum is clearly following an upward trendline. This is evident from the recent pullbacks from $4,000, though buyers have successfully prevented the price from dropping too far, pushing it back above $3,350 and into the $3,400 range.

Source: TrandingView

Despite this, the Relative Strength Index (RSI) is gradually increasing, while the Moving Average Convergence Divergence (MACD) indicates that buying pressure is waning. A bearish crossover in the MACD could signal a further decline, potentially dragging Ethereum’s price lower. Additionally, trading volume has dropped by 7% today to $20.8 billion, as reported by CoinMarketCap, indicating the possibility of a significant price shift soon.

There is a strong likelihood that Ethereum’s price could climb back to $4,000. However, breaking through this resistance will require substantially more buying activity. If Ethereum surpasses the $4,000 mark, it could reach a new all-time high and potentially exceed $5,000.

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