Ethereum briefly surpassed $4K but retraced to prior lows.
Clearing the $4.1K resistance could open the path to $6K for ETH, according to an analyst.
As December reaches midweek, the crypto market has shed 3.06% in market cap over the last 24 hours. Bitcoin price has edged up to $109K in the early hours and dipped steadily to $104K. The largest altcoin, Ethereum (ETH), followed BTC’s footsteps and failed to settle above the $4K zone.
The altcoin is correcting its gains and might struggle to stay above the $3,865 support zone. ETH has formed a high of $4,029, while the low stood at $3,804. Despite the plunge, crypto analysts believe Ethereum could surge past $4.5K and eventually reach $5K.
Notably, the Ali chart discloses Ethereum’s price movement within an ascending channel. The $4.1K level acts as the major resistance; a break above this level could trigger a bullish momentum, targeting the upper resistance at $6K.
Ethereum chose the bearish track for the day, losing over 3.66% over the past 24 hours. At press time, ETH trades at $3,858. In the meantime, the daily trading volume of the altcoin has reached $37.41 billion. Besides, the market has observed a liquidation of $55.82 million worth of Ethereum during this timespan.
ETH to Gain or Lose Momentum
ETH’s four-hour frame has unveiled its rejection at the $4K threshold. If the bullish signal reclaimed the lost momentum, the price might test the $4.1K resistance. Assuming the uptrend stays, Ethereum could target a highly bullish range and climb toward the $4.3K mark.
However, if the current trend continues, Ethereum could form a steep downtrend, falling toward the immediate support at $3,728. A break below that level might trigger further declines, with $3.5K emerging as the crucial support. This could delay the attempts of ETH to reclaim higher price levels.
The Moving Average Convergence Divergence (MACD) line of Ethereum has fallen below the signal line. This crossover signals the asset’s downward correction, and traders often interpret it as potential selling pressure.
In addition, the Chaikin Money Flow (CMF), a technical indicator that confirms the capital flow into the asset, is found at 0.01. It hints at a minimal positive money flow and a slight bias toward buying activity. Meanwhile, the daily trading volume of ETH has dropped by over 13.32%.
Ethereum’s daily trading window has shown the short-term 50-day moving average above the long-term 200-day moving average. Moreover, the daily relative strength index (RSI) is found at 42.76, inferring that the altcoin’s current market sentiment is considered neutral, indicating a balanced market.
