Ethereum has now tested the $4,000 level of resistance, an area that the price was rejected from multiple times before. Successful breakouts could spark bullish momentum, but rejection risks returning to the wider trading range.
You can read more about it here:
- Ethereum tests the $4,000 barrier, the peak of a range with a long trading history.
- A weekly close above $4,000 could confirm a breakout toward $4,500–$5,000.
- If you fail to make a break, the support will be reduced to $2,500 and your range structure is maintained.
Ethereum’s (ETHThe price of the stock is currently hovering at or near the top boundary of an extended timeframe that has been defining its structure from early 2022. It has been repeatedly used as a limit, and this area is decisive for both bulls & bears. Although recent momentum brought ETH quickly to this resistance, it lacks a confirmation on a closing weekly basis. This leaves the market on edge.
The following are some key technical aspects:
- Range High Resistance A long-term trading range between $1300 and $4000 remains at $4,000
- Donate $2,500 to Confluence: The point of control and the 0.618 Fibonacci Retracement are aligned as a strong mid-range Support
- Volume Structure The volume is above average, which indicates that buyers currently have the upper hand.
The Bullish Case
The recent rally of Ethereum began with a strong recovery of the $2,500 area, where the Point of Control level and the 0.618 fib intersected. It created a strong base for confluence, which has been the basis of price growth.
Since then, ETH’s behavior has been impulsive with few signs of weakness. Volumes remain high, confirming the idea that investors are actively buying at technical levels.
It would indicate a structural breakthrough if price could close a week candle decisively higher than the swing high of $4,000 It would confirm the higher high and likely prompt follow-through purchases from participants who have been sidelined.
Upside targets following such a breakout lie in the $4,500–$5,000 region, with historical price action and Fibonacci extensions aligning there. This could shift the sentiment across all altcoins.
The case for the bears:
Ethereum will remain technically at resistance, despite its bullish momentum until the breakout has been confirmed. Multiple times the $4,000 mark has been a point of rejection. The lack of closes above this level keeps bearish pressure active.
A rejection of this area could result in a return to the $2,500 zone as support if ETH is unable to make it through. This is a crucial demand level and any pullback could lead to a lower low.
If the price range is not broken, ETH may revert to a long-term, range-bound action. The bullish trend would be delayed and traders will experience a new level of uncertainty.
Price action to come:
Ethereum has entered a zone of high-stakes. The price would likely move higher if a confirmed close of the week above $4,000 was achieved. Rejection would, on the other hand, keep ETH within its broader range. $2,500 is the next important level.
Disclosure: The article in question does not constitute investment advice. This page is intended for informational purposes only.
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Source: crypto.news
