Ethereum seems poised to make a significant break above the anticipated $4,000 price threshold. Despite this potential, the cryptocurrency has recently it didn’t work out expectations of many enthusiasts and retail traders. The highly publicized launch of the Spot Ethereum ETF instead of causing a rally turned into classic “sell the news” eventwhich leads to disappointment with the market.
However, according to a cryptocurrency analyst, the general mood around Ethereum remains broadly positiveThis optimism is largely supported by some bullish investors who continue to support the cryptocurrency and its stability at the key $3,200 support level.
Ethereum Ready for Breakthrough
In a post from Tradingview, cryptocurrency analyst RLinda delves into some fascinating analysis regarding Ethereum’s current performance. In terms of price, Ethereum corrected by a massive 11.5% in just two days after the launch of the Spot Ethereum ETF on July 23. While it has since recouped some of those losses, Ethereum is still in a corrective phase narrow by tests of key interest zones around the 0.5 Fibonacci retracement level, as well as tests of the 200-day moving average (MA-200).
RLinda’s analysis highlights that this MA-200 corrective test resulted in a significant breakdown below the critical $3,200 support level, with Ethereum price reaching a low of $3,115 on July 25. However, this breakdown below $3,200 turned out to be a false break, as caused a powerful influx of buyers who successfully prevented further declines.
To maintain the broader bullish momentum, RLinda emphasizes the importance of bulls maintaining Ethereum price above the $3,200 support level. If they manage to do so, it could pave the way for another bullish rally, potentially driving the price to break out of key resistance levels and target the $4,000-$4,900 range.
“The main task of the bulls is to maintain the defense above the zone of interest at the level of USD 3,200. Then it remains to wait for a retest of resistance in order to break it and continue the bull run to USD 4,000-4,500-4,900,” the analyst said. he said.
To achieve this bullish recovery, Ethereum would need to clear significant resistance near $3,357 and $3,540, which are identified as powerful order blocks.
Current price action
At the time of writing, Ethereum is trading at $3,370, having rebounded 4.78% from its low of $3,219 in the last 24 hours. This rebound puts the cryptocurrency just above RLinda’s first resistance level of $3,357.
Ethereum’s trajectory could unfold in one of two ways. The cryptocurrency could continue its upward momentum and test the next significant resistance at $3,540. A successful breakout above this level could pave the way for a breakout above the order block, signaling further upside potential to $4,900. On the other hand, Ethereum could face a trend reversal, potentially falling below $3,300. This would suggest a retest of lower support levels and a possible extension of the consolidation phase.
Featured image created with Dall.E, chart from Tradingview.com
