In the world of digital currencies, the volatile nature of the market can often lead to unexpected highs and lows. Ethereum (ETH), the world’s largest altcoin, has recently experienced such a fluctuation, reaching the psychological price threshold of $4,000 for the second time.
This recent price rise saw Ethereum peak at $4,094 before retreating slightly. Despite the brief retreat, the altcoin is once again testing the resistance level, indicating a bullish momentum in the long-term. However, the failure to sustain this momentum above the current high has led to a period of fluctuation below the recent high.
In the broader context, Bitcoin has crossed the significant psychological price threshold of $100,000, according to reports from Coinidol.com. If buyers manage to maintain their momentum, it is expected that Ether will break out above the $4,094 mark and possibly rise to a high of $4,500.
On the other hand, if Ether falls below the 21-day Simple Moving Average (SMA), there could be an increase in selling pressure. The bearish momentum could potentially continue above the 50-day SMA or the low at $3,300.
Looking at the technical indicators, the resistance levels stand at $4,000 and $4,500, while the support levels are at $3,500 and $3,000. Long candlestick wicks at the psychological price barrier of $4,000 signal strong selling pressure at higher prices. However, the uptrend seems to be continuing, with the moving average lines tilting further north.
The 4-hour chart shows Ether trading above support at $3,500 but below resistance at $4,100. The uptrend has stalled at the $4,100 high, resulting in a pullback. If Ether is rejected at its recent high, it could potentially fall and begin a range-bound trend.
Currently, the signal for the cryptocurrency is bullish, as the price bars remain above the moving average lines. However, as always, it is essential for potential investors to conduct thorough research before investing in funds.
This analysis and forecast are based on personal opinions and are not a recommendation to buy or sell cryptocurrency. They should not be viewed as an endorsement by CoinIdol.com. The world of cryptocurrency is ever-evolving, and it remains to be seen in which direction Ethereum will continue to move. As these digital currencies continue to gain popularity and acceptance, their performance and potential for growth will undoubtedly be of interest to many.
