Ethereum News Today: Ethereum Traders Await $4,000 Breakout After Seven Failed Attempts

Ethereum’s price movement has intensified speculation as the asset attempts to break past the $4,000 level, a price range that has repeatedly resisted upward pressure in recent weeks. The cryptocurrency has already tested this resistance seven times, with each attempt ending in rejection, creating a high-pressure environment for traders and analysts. A further failure to breach the level could push the price down into a correction phase, potentially dropping as low as $3,100 [1].

Currently trading around $3,600, Ethereum has shown resilience in its recovery from a recent dip that saw the price fall to $3,400. The price has managed to retest and surpass the $3,800 and $3,900 levels in recent weeks, signaling growing buying interest. Technical indicators suggest that Ethereum is forming a bullish structure, with higher lows persisting and on-balance volume (OBV) indicating strong accumulation. However, one analyst has emphasized that the key support line remains critical—if this level is breached, it could signal a shift in market sentiment and prompt sellers to take control [2].

The potential for an ETH price breakout has led to increased optimism among traders, with some predicting that a confirmed move above $4,000 could push the price as high as $4,200. Yet, the market remains cautious. Another analyst has highlighted the importance of the $3,850 level, stating that a failure to close above this level on the one-day chart could result in an ABC-style correction, potentially sending the price down to $3,100 [3]. The three-day relative strength index (RSI) has already entered overbought territory, suggesting the market may need more time to consolidate before making a decisive move.

Given the technical setup, traders are advised to watch closely for signs of either a bullish breakout or bearish rejection. A failure at $4,000 could lead to a retesting of the $3,100 level, while a successful push above this threshold might confirm Ethereum’s strength and signal the start of a new upward trend. Investors are using a mix of futures and options to hedge positions or speculate on potential price swings, underscoring the volatility and uncertainty surrounding the next move.

Ethereum’s price action not only affects altcoin dynamics but also influences the broader crypto market. As one of the leading altcoins, its performance is often seen as an indicator of a potential altcoin season or a return to Bitcoin dominance. The outcome of the $4,000 battle will likely serve as a key barometer for market sentiment in the near term.

Source: [1] Ethereum Price Prediction: ETH Soars 20% as Bitcoin Dominance Drops, Can Ethereum Hit $4,000 in Altcoin Season? (https://cryptodnes.bg/en/tag/snorter/)