The daily chart shows that Ethereum's price trend exhibits a record high trend line with strong momentum. Last night, Ethereum's price formed a massive bullish engulfing candle and surged by 10%.
Will Ethereum's surge reach $4,000? Read this Ethereum (ETH) price analysis to find out!
Ethereum Price Analysis
The trend line breakout signifies the expansion of a wedge breakout rebound, briefly reclaiming the $3,600 mark. With the emergence of new bullish engulfing candles, the price trend of Ethereum indicates a shift in trend sentiment and increases the upside potential.
The bullish engulfing candle extends from $3,323 to a 24-hour high of $3,688. The price jump began at the 61.80% Fibonacci level and challenges the 78.60% level.
However, oversupply has suppressed bullish momentum, leading to an intraday pullback of 1.87%. Currently, the price of Ethereum is $3,589.
Technical Indicators:
EMA: The massive bullish engulfing candle indicates increased bullish influence, leading to a golden cross. Additionally, bullish crosses have also occurred for the 100-day and 200-day EMAs, boosting overall sentiment.
MACD: The MACD and signal line avoided a bearish crossover for the second time and remained positively aligned as the bullish histogram reappeared. Therefore, the technical indicators support a bullish outlook for Ethereum.
The Ethereum ETF continues to grow, with increasing institutional support.
On November 27, the daily net inflow for the Ethereum ETF was $90.1 million, bringing the cumulative net inflow to $240.41 million. Fidelity's FETH had a cumulative inflow of $38.01 million, followed by Grayscale's $37.29 million and VanEck's $13.25 million.
The majority of net inflows for the U.S. spot Ethereum ETF remained zero, with Bitwise's ETHW seeing a net inflow of $1.56 million. As the total net assets of the Ethereum spot ETF rise to $10.8 billion, accounting for 2.47% of Ethereum's market cap, institutional support is gradually increasing. This could push Ethereum's market price higher in the coming months.
Will the ETH price reach $4,000?
Despite some intraday pullback, a recovery in market sentiment is expected to trigger a rebound during U.S. trading hours. The rebound will break through the resistance level at $3,668, with $3,800 becoming the next resistance level.
On the other hand, the slowdown in U.S. trade will test the support level at $3,400.
