Ethereum has been garnering attention as it approaches the $4,000 price threshold, sparking hopes of a significant breakout. However, the recent launch of Spot Ethereum ETFs led to a classic “sell-the-news” event, disappointing many in the market. Despite this setback, the overall sentiment surrounding Ethereum remains positive, with bullish investors holding the cryptocurrency steady at a crucial support level of $3,200.
In a recent Tradingview post, crypto analyst RLinda provided some insightful analysis on Ethereum’s current performance. The cryptocurrency experienced an 11.5% correction in just two days following the ETF launch, testing key zones of interest around the 0.5 Fibonacci retracement level and the 200-day moving average. Although Ethereum dipped below the critical $3,200 support level, buyers stepped in to prevent further declines, signaling a potential bullish reversal.
To sustain the bullish momentum, RLinda emphasizes the importance of Ethereum staying above the $3,200 support level. Breaking through resistance levels around $3,357 and $3,540 is crucial for Ethereum to target the $4,000 to $4,900 range and potentially initiate a significant bullish rally. Currently, Ethereum is trading at $3,370, up 4.78% from its recent low, positioning itself just above the first resistance level identified by the analyst.
The future trajectory of Ethereum could unfold in two possible scenarios. It may continue its upward trend, testing resistance at $3,540 and potentially breaking through to reach $4,900. On the other hand, a reversal could see Ethereum dropping below $3,300, signaling a retest of lower support levels and further consolidation. Overcoming strong resistance levels will be key for Ethereum to maintain its bullish momentum and achieve a breakout above $4,000.
Overall, while Ethereum may have faced some setbacks following the ETF launch, the underlying sentiment remains positive, with investors showing confidence in the cryptocurrency’s stability at the $3,200 support level. With strategic analysis and a focus on key resistance levels, Ethereum has the potential to embark on a bullish rally towards $4,000 and beyond, marking a significant milestone for the popular cryptocurrency in the near future.
