Ethereum Hovers at Key Resistance Level: Pullback or Breakthrough?

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Ethereum (ETH) has encountered resistance while testing the key resistance level of $4000 recently, with strong seller presence in this area becoming a major obstacle for bullish breakout. In the short term, the market may face a pullback, but this also provides an opportunity for buyers to re-enter the market.

Technical Analysis: Double Top and Support Test

Daily Chart: Consolidation and Potential Double Top

Current Status: Ethereum price has attempted to break through $4000 multiple times but faced selling pressure each time.

Pattern: The price action has formed a double top bearish reversal pattern, suggesting a potential pullback to the $3500 support level.

Consolidation Range: ETH is still fluctuating between $3500 and $4000, currently in a consolidation phase.

Potential Breakout: If successfully established above $4000, it may usher in stronger upward momentum, opening the door to historical new highs.

4-Hour Chart: Ascending Channel and Liquidation Levels

Short-Term Trend: At the lower boundary of the ascending channel, buyers re-entered, driving a brief price rebound. However, they faced rejection again near $4000.

Fluctuation Range: The current price is oscillating between the support at $3700 and resistance at $4000, and further testing of the channel's lower limit is expected.

Liquidation Levels: Heatmap shows a significant amount of short positions' liquidation levels above the $4000 resistance. This means that once a breakout occurs, ETH is expected to trigger large-scale liquidations and push prices further up in the short term.

Key Price Levels and Market Strategy

$3500 Support Level: If the price pulls back, this could become a strong entry point for buyers.

$4000 Resistance Level: The main short-term objective is to break through this level. Once broken, the market may attract more institutional and whale investors.

Liquidity Incentives: A significant concentration of liquidation levels above $4000 increases the likelihood of ETH breaking through while also providing an attractive target for bulls.

Market Outlook: Welcoming a New Round of Uptrend After Adjustment?

Ethereum is currently fluctuating between key price levels. Although the possibility of a short-term pullback is high, the liquidation levels and the structure of the ascending channel indicate that the mid-term bullish trend remains intact. If it breaks through $4000, it will open up space for a new round of upward movement.

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