Ethereum is on the verge of surpassing the $4,000 price mark, according to an analyst. Despite falling short of expectations after the launch of Spot Ethereum ETFs, the overall sentiment surrounding Ethereum remains positive. The cryptocurrency’s stability at the crucial support level of $3,200 has kept bullish investors confident in its potential.
In a recent analysis, RLinda notes that Ethereum experienced an 11.5% correction in just two days after the launch of Spot Ethereum ETFs. Although it has since recovered some of these losses, Ethereum is still in a corrective phase, testing key levels such as the 0.5 Fibonacci retracement level and the 200-day moving average.
A significant breakdown below the critical support level of $3,200 occurred, with Ethereum bottoming out at $3,115. However, this turned out to be a false breakdown as a surge of buyers prevented further declines. To maintain the bullish momentum, it is important for bulls to keep Ethereum’s price above the $3,200 support level. If successful, this could lead to a renewed rally and a potential breakthrough of resistance levels, targeting the $4,000 to $4,900 range.
Ethereum is currently trading at $3,370, rebounding by 4.78% in the past 24 hours. The cryptocurrency may continue to rise and test the significant resistance at $3,540, potentially paving the way for further bullish potential up until $4,900. However, a reversal could occur, signaling a retest of lower support levels and extending the consolidation phase.