Ethereum is making another attempt to break above the $4,000 level as it approaches its all-time highs. Despite sturdy market fundamentals, doubts remain about Ethereum’s performance this cycle, with some expecting it to weaken in the face of stiff competition from other blockchain ecosystems. However, Ethereum’s recent price action suggests it is gaining momentum, keeping investors guessing ahead of a potential breakout.

Top analyst Carl Runefelt recently shared a technical analysis, noting that Ethereum has encountered sturdy resistance near the $4,000 level and is currently consolidating in a symmetrical triangle on the hourly chart. This pattern often precedes a decisive move, leaving traders speculating whether ETH will hit modern highs or face a short-lived pullback.

Ethereum’s performance at this key level will likely shape market sentiment in the coming weeks. A break above $4,000 could pave the way for a rally towards an all-time high, re-instilling investor confidence. On the other hand, failure to overcome this resistance could confirm bears’ fears and lead to a rebound. As ETH remains at a critical juncture, all eyes are on its ability to navigate this key zone and make its next major move.

Ethereum is getting ready to move

Ethereum is grappling with significant resistance above the $4,100 level, leaving the market in uncertainty as investors await the next move. Amid price consolidation and signs of stress, Ethereum appears poised to make a decisive move in the coming days. The large question remains: will the stock break higher or will a pullback be inevitable?

Runic Field shared his observations about Xindicating that Ethereum is currently trading within a symmetrical triangle on the hourly chart – a formation known to signal potential breakouts or breakdowns. According to Runefelt, Ethereum’s immediate future depends on two key levels.

A break above $4,100 would confirm the bullish trajectory, likely steering ETH towards modern highs. Conversely, a break below $3,675 would signal bearish sentiment, opening the door to a deeper correction.

Runefelt emphasizes the importance of these levels, noting that a symmetrical triangle suggests increasing pressure that could soon lead to significant volatility. As Ethereum maintains its position near critical resistance, the next few days will be crucial in determining the direction of the market.

Technical levels to watch

Ethereum (ETH) is currently trading at $3,840 after failing to break the critical $4,000 resistance level. While the price remains sturdy and within the range of this key level, it needs to clear $4,000 to confirm the continuation of the uptrend. Without a decisive breakout, ETH risks losing momentum, leaving traders and investors cautious about its next move.

The $4,000 level has proven to be a significant psychological and technical barrier for Ethereum, and repeated attempts to breach it have been met with selling pressure. A successful break of this resistance would likely pave the way for ETH to reach higher levels, potentially pushing towards yearly highs of $4,100 and beyond.

However, if Ethereum does not overcome this obstacle, the market may return to lower demand zones. The $3,500 area is emerging as a critical support level that investors are closely monitoring. A drop to this level could provide a sturdy base for a rebound, but the loss of this support could signal a shift in sentiment towards bearishness.

Featured image from Dall-E, chart from TradingView