Key Points
- Ethereum briefly reached $4,000, fueled by ETF excitement.
- Technical analysis indicates a possible sustainable break above $4,000 soon.
Ethereum (ETH) recently experienced a surge, briefly touching the $4,000 mark. This was largely driven by excitement surrounding Exchange Traded Funds (ETFs).
At the moment, Ethereum is hovering around $3,947. The question on many people’s minds is when Ethereum will solidly break the $4,000 barrier.
Ethereum’s Bullish Signs
The Ethereum/USDT pair showed a significant upward trend, temporarily surpassing $4,000 before entering a consolidation phase. This sharp increase indicates a strong buying pressure, suggesting a bullish market.
Moving averages (MA50 and MA200) show a bullish crossover, with the MA50 trending above the MA200 – typically a positive sign. The Relative Strength Index (RSI) is around 63, indicating strong momentum without being overbought. This supports potential further upward movements.
However, recent consolidation near the $3,940 mark could temporarily limit gains as Ethereum stabilizes. If Ethereum can maintain support above the MA200 line and leverage the current bullish sentiment, it could attempt another break above $4,000 later today.
Ethereum Derivatives Market and Investor Sentiment
The Ethereum derivatives market is also showing bullish activity, with an increase in both trading volume and Open Interest, indicating heightened trader engagement.
Long/short ratios, especially data from top traders on Binance and OKX, reveal that long positions far outweigh short positions. This suggests that the market’s leading participants are bullish on Ethereum, which could boost Ethereum’s chances of sustaining a price above $4,000 and potentially reaching new heights.
The Ethereum Fear and Greed Index is currently at 66%, indicating “Greed”, further reflecting the bullish sentiment in the market.
Bulls are supported by positive scores across multiple indicators such as social, volume, and volatility. Based on these metrics, it seems Ethereum bulls are waiting for the market to cool down, and a surge above $4,000 could likely happen today or tomorrow at the latest.
