26.3 C
New York
Monday, July 22, 2024

What Will Come First for ETH: $3,000 or $4,000? (Ethereum Price Analysis)

Must read

Ethereum’s price has finally reached a significant obstacle following months of rallying. Yet, there are still reasons to be optimistic that the market can climb higher.

Technical Analysis

By TradingRage

The Daily Chart

On the daily chart, the price has been rejected from the $4,000 resistance after rallying consistently since the beginning of February.

The price has dropped to the $3,600 support level, which is currently holding. If ETH rebounds from here, the market might be able to rise above $4,000 and make a new all-time high in the coming weeks. On the other hand, a breakdown can lead to a decline toward $3,000.

Source: TradingView

The 4-Hour Chart

Looking at the 4-hour timeframe, the price has seemingly experienced a shift in structure. The market has been making lower highs and lows since its rejection from the $4,000 resistance zone.

While the $3,600 support level might still hold, ETH might break lower, as the Relative Strength Index is showing values below 50%. Therefore, a pullback toward the $3,000 level might be expected in the short term.

Source: TradingView

On-Chain Analysis

By TradingRage

Ethereum Exchange Reserve

Ethereum’s price has been rallying aggressively over the last few weeks. Yet, the recent drop below the $4,000 level has shocked market participants and caused panic selling by some holders.

This chart displays the exchange reserve metric, which measures the amount of Bitcoin held in exchange wallets. A rise in the metric typically indicates a rise in supply, which could lead to a decline in price.

As the chart demonstrates, the exchange reserve has risen above its 30-day moving average. This points to the fact that many holders are depositing their coins to the exchanges with the intention to sell them. A continuation of this trend can be detrimental, as it could result in a further price decline in the coming weeks.

Source: CryptoQuant

SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.

More articles

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments

Latest News