Ethereum Finds Sell Wall At $4,090: What’s Going To Happen?
Ethereum is floating higher, following Bitcoin at press time. ETH is trading above $4,000, and bulls are firmly in control. Even though there were elements of weakness on March 11, the rebound in the Asian session has been spectacular.
To quantify, ETH is steady when writing, adding roughly 1%. However, it is up 7% in the past week, signaling strong upward momentum. As prices expand, its market cap is up 1% to over $486 billion. At the same time, the average trading volume has increased to more than $26 billion, adding 10% in the past trading day.
Technically, bulls are optimistic. The development in the fundamental front might affirm their upbeat forecasts. They include:
- Dencun Upgrade plans: Ethereum will hard fork in the coming sessions, integrating proposals laid out by Dencun. Some include scaling enhancements via “Blobs”, making layer-2 transactions even cheaper. This hard fork might be a catalyst, lifting prices toward $4,500 in the coming sessions.
- Vitalik Buterin has proposed a strategy to make Ethereum resistant to Quantum attacks. The proposal is primarily preemptive, designed to safeguard user funds over the long haul. Quantum computers can break code behind most cryptographic programs protecting public ledgers.
Ethereum Price Analysis
ETH/USD prices are firm at press time.
With the uptrend defined, buyers can look for entries on dips, trading above, ideally, $3,800 and $4,000 zone. This region marks immediate support and March 11 lows.
Though prices edged higher during the Asian session, the failure of bulls to follow through in the European session is a concern.
Risk-on traders can wait for a high volume close above the key resistance level of $4,090 before loading the dips, targeting $4,500. The level marks March 10 and 11 highs, where prices have been rejected the most.
However, losses below the key support level of $3,800 would invalidate this bullish outlook, potentially shifting the market sentiment in favor of sellers.
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