Ethereum eyes a breakout above $4,023, with a retest potentially confirming bullish momentum toward $4,087.73.
Failure to maintain above the VAH could push ETH/USD down to test support near $3,729 and the blue demand zone.
Volume analysis signals indecision, with critical zones at $4,023 resistance and $3,729 support guiding ETH’s next move.
Ethereum's price shows upward momentum, trading at $3,968.81, near the value area high (VAH) of $4,023. Analyst CJ identifies critical levels for ETH/USD, highlighting potential bullish and bearish scenarios. The current price movement positions Ethereum within a well-defined range, with attention paid to its next steps.
Bullish Breakout Hinges on VAH Reclaim
Ethereum faces a pivotal test at the VAH of $4,023. A breakout above this level, followed by a rounded retest, could confirm a bullish continuation. Significantly, this would push the price toward the gray resistance zone between $4,023 and $4,087.73. If a clean break occurs, ETH/USD could climb higher, reflecting strong buying momentum.
However, failure to hold above VAH might lead to a bearish reversal. The price may test the value area low (VAL) at $3,729.32. A deeper move into the blue demand zone below $3,700 could further intensify selling pressure.
https://twitter.com/CJ900X/status/1868495423763354050 Demand Zones Offer Key Support Signals
Notably, Ethereum has displayed strength around the minor demand zone within its current range. Buyers have pushed prices higher, signaling short-term support. Besides, the VAL zone near $3,729 aligns with the broader demand area. This overlap suggests strong buying interest and potential reversals if tested.
Additionally, CJ highlights the presence of equal lows near $3,500. This structure offers further confluence for the lower support zone. Volume data indicates consolidation near the mid-range, suggesting balanced market conditions. However, any acceptance below VAL could signal weakness and invite bearish pressure.
Volume and Structure Reinforce Critical Levels
Volume analysis reveals high activity around key support and resistance zones. The gray resistance zone near VAH and the blue demand zone below VAL hold significant importance. These areas are critical for traders monitoring Ethereum's next move. Consequently, Ethereum remains at a crucial crossroads. A breakout above $4,023 could ignite a bullish rally. Conversely, rejection here may lead to further downside, testing $3,729 or lower demand zones.
The post ETH/USD Faces Key Resistance, Will Ethereum Reclaim $4,023 for Bullish Continuation? appeared first on Crypto News Land.
