Could Ethereum (ETH) Reach $4,000 in May?
Ethereum’s price has experienced a recent decline but is showing signs of a bullish pattern, leading some to believe that it has the potential to reach $4,000.
Despite a dip to $3,000, this actually tested the upper trend line of a descending wedge, which indicates the potential for gains. In addition, Ethereum holders remain optimistic, as seen through the Net Unrealized Profit/Loss (NUPL) indicator, which shows they still hold substantial gains and suggests a rally may be on the horizon.
Although the movement of Ethereum whales has slowed down, which is typically seen as bearish, the low price and overall activity suggest a positive outlook.
The current price of Ethereum at $3,000 serves as a support floor within the descending wedge pattern. If the price breaks out of this pattern to the upside, the target for ETH is $4,000, representing a 27% increase. However, it is more likely that the price could reach $3,582, a 13.6% rise.
If Ethereum’s price falls below the $2,991 support floor, it could invalidate the bullish thesis and potentially push ETH below $2,800.
Overall, while it is unlikely that Ethereum will reach $4,000 in May, there is still optimism for a bullish trend and potential price increases in the near future.