Ethereum has been grappling with the $4,000 resistance level since early December, facing difficulty in breaking above this critical threshold. Despite these challenges, the price structure suggests Ethereum is gearing up for a significant move. Investors and traders are closely monitoring this range, anticipating a potential breakout that could lead to new yearly highs.
Top crypto analyst Jelle recently shared an insightful technical analysis on X, highlighting Ethereum’s strong bullish setup. According to Jelle, ETH is on the verge of a “monster breakout” as it continues to consolidate just below its yearly high. He suggests that once ETH decisively clears the $4,000 level, the momentum will drive a massive rally, potentially unlocking uncharted price levels for the leading altcoin.
This outlook has sparked optimism among Ethereum supporters, who believe the asset’s next move will set the tone for the broader crypto market. With ETH maintaining robust support levels and showing signs of strength, the possibility of a sustained upward trend seems increasingly likely. As market sentiment builds, all eyes are now on the $4,000 barrier, which holds the key to Ethereum’s next major price surge.
Ethereum Set For New ATH
Ethereum is positioning itself for a potential rally above its all-time highs, but first, it must break above the yearly highs around $4,100. The price has faced consistent resistance around the $4,000 mark, leading to hesitation in pushing past this crucial level. However, analysts are watching closely, expecting a breakout once ETH surpasses this multi-year resistance.
Top analyst Jelle recently shared a technical analysis on X, suggesting that Ethereum is on the cusp of a “monster breakout.” According to Jelle, the next major move for Ethereum will see the price enter five-figure territory. He strongly believes that once Ethereum reclaims the $4,000 level and consolidates above it, the momentum will lead to a massive rally that could push ETH into new all-time highs.
The bullish sentiment surrounding ETH is growing as market conditions seem favorable for a continued uptrend. If ETH manages to overcome the $4,100 resistance and holds above the psychological $4,000 level, the rally could be explosive, paving the way for significant gains. Ethereum’s fundamentals remain strong, with ongoing developments in the DeFi and Ethereum 2.0 space adding to its appeal.
For now, Ethereum’s price action is in a crucial zone. A breakout above $4,100 could ignite the bullish run many traders are expecting, while failure to break this level could lead to further consolidation. Nonetheless, analysts remain confident that ETH will eventually break through, marking the beginning of a major price surge.
Price Action: Technical Details
Ethereum is currently trading at $3,900, maintaining strength above the key demand level at $3,600. This shows resilience in the market as ETH consolidates and prepares for its next move. However, the key resistance remains at the $4,000 mark, and if ETH fails to break above this level in the coming days, a retrace toward lower demand levels could be expected. Traders will be closely watching the $3,600 level as a crucial support zone to determine whether the current consolidation will hold.
On the other hand, if ETH successfully breaks above the $4,000 level and holds it as support, a bullish rally could ensue. A sustained move above $4,000 would signal the continuation of the upward momentum, potentially leading to new yearly highs. The $4,000 level has acted as a key psychological resistance, and clearing it could spark increased buying interest and lead to further gains.
Overall, ETH is at a pivotal point. A break above $4,000 would likely trigger a strong rally, while failure to do so may result in a short-term pullback, testing lower support zones before any potential continuation of the bullish trend.
Featured image from Dall-E, chart from TradingView