Ethereum (ETH) broke out of nearly two weeks of consolidation below $3,524, marking a significant price jump.
The “king of altcoins” is now approaching the critical barrier at $3,721, with bullish momentum supported by strong investor activity. ETH currently looks set to continue its climb towards the $4,000 milestone.
Ethereum Investors Are Bullish
The change in the exchange’s net position highlights a substantial outflow of 89,000 ETH, equivalent to approximately $323 million. These outflows indicate a growing accumulation as investors move their assets off exchanges to secure long-term holdings.
As ETH’s price rises, fear of missing out (FOMO) could further drive demand for the asset. The ongoing accumulation is in line with this sentiment, suggesting that holders are optimistic about the asset’s future growth and its potential to reach new heights in the coming weeks.
Change in Ethereum Exchange Net Position. Source: Glassnode
Macro momentum remains strong, reinforced by the Chaikin Money Flow (CMF) indicator. Currently approaching the neutral line, the CMF is about to enter bullish territory, a clear sign of increased inflows. This indicates that investors are actively investing in Ethereum.
As inflows grow, Ethereum’s accumulation trend strengthens, reflecting robust support for its current price action. The positive movement of the CMF suggests continued investor interest, further reinforcing the potential for ETH to reach its next price targets.
CMF de Ethereum. Fonte: TradingView
Price prediction
Ethereum is currently trading at $3,681, just below the $3,721 resistance, a key resistance point and the last hurdle before reaching $4,000. Flipping this level into support would set the stage for a rally to the 2024 high of $4,107.
The combination of bullish investor sentiment and favorable macroeconomic conditions indicates that Ethereum could reach $3,988. Such upward momentum would mark a significant recovery and solidify the altcoin’s position in the market.
Ethereum Price Analysis. Source: TradingView
However, failure to break above $3,721 could push Ethereum back to $3,524, invalidating the bullish outlook. Such a pullback would delay the price recovery, emphasizing the importance of maintaining upward momentum to secure its price targets.
The article Ethereum Faces Final Resistance: Could Price Hit $4,000? appeared first on BeInCrypto.
