Ethereum News Today: Ethereum hovers near $4,000 as bullish structure holds but signs of exhaustion emerge

Ethereum continues to trade near the critical $4,000 level, maintaining a bullish structure after breaking out from key resistance zones at $2,800 and $3,300. The price has consolidated just below $4,100, with the 100-day and 200-day moving averages forming a golden cross around $2,600, reinforcing the long-term bullish bias [1]. However, signs of short-term exhaustion are becoming more evident, particularly with the RSI entering overbought territory above 77, suggesting the market may need a pause before continuing higher [1].

On the 4-hour chart, Ethereum is moving within an ascending channel, repeatedly testing the upper boundary without sustaining a breakout. The RSI on this timeframe is currently below 60, indicating a slowdown in momentum [1]. A confirmed break above $4,000 could open the path toward new highs, but a breakdown of the channel would likely push the price toward the $3,500 level, which is seen as the first major support. If this level fails, further selling pressure may follow [1].

Sentiment among traders remains generally bullish, but the recent surge in short liquidations suggests a potential short-term top. While this indicates aggressive short positions being wiped out, it also means fewer shorts remain to fuel further upward momentum. As a result, any new price gains would need to be driven by strong on-chain demand rather than short squeezes [1].

Some analysts have offered more optimistic projections, with a few traders predicting that Ethereum could reach as high as $16,000 in this bull cycle. These forecasts are based on macroeconomic conditions and Ethereum’s upcoming network upgrades but should be treated as speculative and not as guaranteed outcomes [1].

Ethereum’s price action is closely watched due to its role as a foundational smart contract platform and its exposure to broader market trends. While Bitcoin often sets the tone for the crypto market, Ethereum’s unique position in decentralized finance (DeFi) and NFT ecosystems makes it a key asset. However, until ETH can break decisively above $4,000 and maintain that level, uncertainty remains among traders [1].

Caution is still warranted as the path to a sustained breakout will likely be influenced by factors such as market volatility, regulatory developments, and macroeconomic conditions, including interest rates and inflation. These variables can impact risk appetite and investor behavior in a market still prone to sharp swings [1].

In summary, Ethereum is at a pivotal moment. Traders are closely watching for a potential breakout above $4,000, but the market remains cautious. The coming weeks and months will determine whether this level acts as a gateway to higher prices or as a temporary ceiling. As always, due diligence and risk management remain essential in the volatile cryptocurrency market [1].

Source:

[1] ShayanMarkets (https://coinmarketcap.com/community/articles/688b6b228a7b6212045b2009/)