Ethereum Breaks Resistance, Eyes $4,000 Milestone

Ethereum Breaks Resistance, Eyes $4,000 Milestone

Ethereum Breaks Resistance, Eyes $4,000 Milestone

Ethereum’s recent surge in price, which reached $3,700 and reflected a 5% increase in one day, follows Bitcoin’s upward trend.

Ethereum (ETH), the cryptocurrency with the second-largest market capitalization, saw a significant surge in price, rising to $3,700, an increase of more than 5% in only one day. The price of Ethereum is following suit with Bitcoin’s (BTC) recent increase, which has seen it hit $68,000 and may shortly rally toward the $4,000 resistance zone.

A new multi-month high of $3,715 has been achieved, marking a discernible upward trend beyond the $3,700 barrier. The price is now holding above the $3,715 high, which is the 23.6% Fibonacci retracement level of the rise from the $3,465 swing low. This suggests that the price is consolidating gains.

With a price of $3,695 at the time of writing, Ethereum is trading above both the $3,650 mark and the 100-hourly Simple Moving Average. Furthermore, on the hourly chart of ETH/USD, a positive trend line is forming that points to support near $3,600. In the upward rise from the $3,465 swing low to the $3,715 high, this trend line is close to the 50% Fibonacci retracement level.

Near the $3,720 mark, buyers will encounter immediate upward resistance; nevertheless, $3,780 marks the first major hurdle. The following level of resistance is around $3,850; a move above this might set off a chain reaction of price increases. The $3,920 level might be the next upward target if this happens.

If Ethereum is able to break past the $3,920 resistance, it could continue to rise and eventually reach the $4,000 level. Additional gains could necessitate a $4,200 test. A possible downward correction could occur if it has trouble breaking through the $3,720 resistance. Under this situation, we may expect to see some downside support near the $3,650 mark.

the skyrocketing value of ether

Rising financing rates, increasing buying pressure in the US on the Coinbase exchange, and anticipation surrounding the eventual approval of a spot Ethereum exchange-traded funds (ETFs) are some of the other factors that market observers have pointed to as contributing to Ethereum’s steady price growth.

On the other hand, Grayscale Investments attributes much of the appreciation in Ethereum’s value on the impending Dencun upgrade, which will supposedly increase throughput and cut the cost of specific network transactions. Others have suggested that “network revenue generation” and “network deflationary supply” are to blame for the upbeat spirit.

Ethereum, however, is now valued at $449 billion, putting it in the 24th spot among all important assets and companies in the world. This figure outshines the market worth of major corporations like Mastercard ($444.6 billion) on the worldwide mainstream asset market, highlighting the increasing appeal of Ethereum.

Recent gains for Ethereum are indicative of the network’s rising profile among global assets and good market dynamics caused by a number of reasons.

Read Previous

Web3 Gaming: A New Frontier for Developers and Players Alike

Read Next

Baanx Raises $20 Million in Series A Funding