Despite Bitcoin’s recent rally toward $93K, Ethereum (ETH) price has not managed to explode like many altcoins like Dogecoin (DOGE), Solana (SOL), Floki (FLOKI) and so on. However, ETH has decisively cleared the $3K psychological level, which makes it easier for it to scale higher and revisit $4K.
But will Ether manage to do that? This article explores the potential upside for Ethereum and what investors can expect next on Monday as Bitcoin price today flashes bullish signs.
Ethereum Price Analysis: Will ETH Hit $4,000?
Ethereum price shows signs of a potential correction after failing to pierce a key hurdle at $3,141. Although there was a brief push above this resistance level, the lack of bullish momentum or profit-taking has resulted in a consolidation below it. As a result of this failure, investors shoud expect a short-term correction that will allow bulls to recuperate before attempting another leg up.
The Relative Strength Index (RSI) is cooling off around the mean level of 50 after reaching beyond the overbought zone. The Awesome Oscillator (AO) is also displaying red receding histograms nearing the mean level of 0. Both these techncial indicators are clearly indicating waning bullish momentum. If the RSI and AO flip below their respective mean levels of 50 and 0, it would signal a shift in the outlook favoring bears.
If such a development were to occur, the value of ETH could plummet lower. The $2,780 is the next key support level that could hold the key to the next leg. Sidelined investors can accumulate Ether here. A spike in buying pressure here could propel the second-largest crypto by market cap to revisit the $3,141 hurde. A decisive daily candlestick close above this level could confirm a breakout and opens up the chance for a 10% rally to $3,443 or $3,500.
Depending on the buying pressure and investor sentiment, Ethereum price prediction could propel beyond this short-term hurdle at $3,500 and tag the $4,000 psychological level. In total, this rally would constitute 43% rally from the $2,780 support.
Considering the 46% rally seen between November 4 and 12, it isn’t unlikely for Ethereum to pull this move.
While the bullish outlook makes sense from a technical standpoint, investors need to consider on-chain signs. According to Santiment, the 30-day Market Value to Realzied Value (MVRV) ratio hit a yearly high of 22.57%. This level was last seen in March 2024, when ETH formed a local top. If history repeats, then a correction is due for ETH and is in line with the short-term outlook forecasted above.
On the other hand, if Ethereum price corrects and tags the $2,780 support level, but buyers fail to step up, it would signal lack of demand. Such a development would invalidate the bullish thesis and could see Ethereum price crash toward the $2,500 support level.
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