Ethereum Bulls Targeting $4,000, Will They Succeed?
Ethereum price is trending higher as bulls edge closer to the elusive $4,000 level. However, risks remain considering the over-leveraging
Ethereum is on an uptrend, looking at the candlestick arrangement in the daily chart. ETH is at around 2024 highs, charting closer to the elusive $4,000. Even at spot rates, the coin is at multi-month highs, levels last seen in the 2021. Buyers are determined, rejecting every attempt for lower lows—especially if yesterday’s price action guides.
At present, Ethereum is outperforming Bitcoin, adding 8% in the past week. It is also more volatile than Bitcoin in the past 24 hours. This preview is despite ETH/USD prices trading within a tight narrow range.
Ethereum remains to be the second most valuable currency when writing. There are no formidable challenges, at least in valuation. At current prices, it maintains a market share of 18.2%. The average daily trading volume in the last 24 hours stands at over $30.7 billion; highlighting its liquidity depth and interest across the board.
With buyers buoyant, and expecting more gains, the following events might shape ETH’s trajectory:
- Liquidation risks: So far, the uptrend is clear, and it appears that traders are doubling down in droves. However, the spike in the ETH futures premium, which measures the divergence between prices in perpetual and spot exchanges, recently rose to around 23% on March 6. This makes ETH price more susceptible to flash crashes, and thus, liquidation.
- On-chain enhancements: Dencun is on focus, and will be the foundation of addressing scaling in the long term. This fundamental event is crucial for ETH, and could be triggering demand for the coin. After this update, FOMO will likely subside, perhaps forcing the coin lower.
Ethereum Price Analysis
The path of least resistance is upward, looking at price action in the daily chart.
For HODLers and swing traders, the local resistance is at around $3,900. If broken, ETH/USD will likely float to $4,000 and later $4,500.
In the short term, traders are closely monitoring reactions at $3,900 and $3,700. If the support at $3,700 is broken, the odds of ETH flash crashing to $3,200 will be elevated.
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