Ethereum has been significantly impacted following the recent market downturn, but it is now showing signs of recovery. Analyst Rlinda suggests that if Ethereum can break through the resistance zone between $2,717 and $2,817, the price could surge to $4,000. However, failing to maintain these levels could lead to a pullback.
Resistance Levels Present Ongoing Challenge
Ethereum is grappling with a critical resistance zone between $2,717 and $2,817 on the daily chart. These levels have been tested multiple times recently, but the price consistently retreats, hovering around $2,500. Overcoming this resistance is essential for the bulls to sustain the upward trend.
Currently, Ethereum is trading near its 50-week moving average on the weekly chart, a historically strong support level. Additionally, the 200-week moving average sits at approximately $2,156, indicating Ethereum’s long-term upward potential.
Path to $4,000 Hinges on Key Levels
Surpassing the resistance zone between $2,717 and $2,817 could set Ethereum on a trajectory toward $4,000, with $3,500 being an intermediate target. Failure to break these levels, however, might result in a fallback to around $2,500, with critical points at $2,425 and $2,400.
Recent market liquidations followed by quick recoveries suggest potential for upward movement. For the bull market to persist, Ethereum needs to reach and maintain the $3,000 level. Sustained consolidation beyond this threshold could enable new highs.
Key Takeaways for Investors
Investors should consider the following actionable insights:
- Monitor the $2,717 to $2,817 resistance zone closely.
- Watch for sustained trading above $3,000 for bullish continuity.
- Be aware of critical support levels at $2,425 and $2,400.
- Track Bitcoin’s movement, as it influences Ethereum’s trend.
The future movement of Ethereum largely depends on how these resistance levels are navigated. A successful breach could make the $4,000 level a realistic short-term target. Conversely, failure to break through could lead to a market pullback. Bitcoin’s performance will also play a crucial role; a downward trend in Bitcoin could dampen Ethereum’s upward momentum.