In a landmark moment for the cryptocurrency world, Bitcoin has successfully breached the $100,000 mark for the first time in history. At present, bulls are aiming for targets exceeding $103,000. As the spotlight has now shifted to Bitcoin, Ethereum, the second-largest cryptocurrency, is also demonstrating a robust bullish momentum.
Currently, Ethereum is experiencing a breakout towards the $4,000 mark. Analyzing the weekly Ethereum chart reveals an impressive price performance, indicating a strong upward trajectory. Ethereum is rapidly nearing a significant resistance zone that lies between $3.9K and $4K. Should it succeed in surpassing these levels, the next target would be its previous all-time high, approximately between $4.7K to $4.9K, tantalizingly close to the $5,000 mark.
On the 3-day chart, Ethereum is ascending above the $3.2K mark, a point that previously served as resistance but now provides support. It also enjoys support around the $3.5K mark. The next resistance zone to keep an eye on lies between $3,850 and $4,000, which were the previous highs. On the daily chart, Ethereum continues to break through previous resistance levels, which are now acting as support. The altcoin has witnessed strong buying around the $3,430 to $3,560 range, solidifying the breakout.
However, there is a potential bearish divergence in formation, although it remains unconfirmed as no strong rejection in the Relative Strength Index (RSI) has been observed yet. At this juncture, the situation appears more bullish than bearish. For short-term gains, it is vital to monitor the $3,750 level. A confirmed breach above this could trigger a surge towards $4,600, and potentially, higher targets.
Looking to the future, Ethereum is forming a cup and handle pattern. Some analysts predict that this could propel prices to reach $7,400 or even the $10,000 mark. However, Ethereum currently faces resistance at $4,000, and it is necessary to break and maintain above this level to ascend further.
The formidable uptrend of Ethereum is backed by substantial institutional investments, with inflows to Ethereum ETFs recently outpacing those to Bitcoin. This trend indicates promising price action for Ethereum. Many experts believe that it could reach new peaks by the end of the year, potentially even surpassing its record high. This heralds an exciting time for Ethereum and the cryptocurrency world at large.
