Ethereum's price has been on an upward trend, nearing the critical level of $4000. Analysts, however, warn of a potential pullback in the near future.
Daily Chart Analysis
The daily chart shows ETH's upward trend within a large ascending channel. This trend began in mid-April, with the price breaking multiple resistance levels upward. Both the 100-day and 200-day moving averages are currently below the price, with the 100-day MA displaying an upward slope after a bullish crossover. Current data suggests that the market could push beyond the $4,107 level and reach a new all-time high if the channel breaks upward. However, a rejection from the upper trendline of the channel could pull the price back to the $3,200 area, which would be crucial for determining whether a short-term correction or a full-blown reversal is likely.
4-Hour Chart Analysis
The 4-hour chart indicates an interesting reaccumulation phase occurring after a rally. The price has been consolidating between the $3,500 and $3,800 levels, with a false breakout and liquidity sweep occurring below the $3,500 zone. Currently, the price is on the verge of breaking above the $3,900 high, and if there is an impulsive follow-through, the market may begin a new aggressive rally as it seeks a new all-time high. The RSI is approaching 67, confirming bullish momentum but also hinting at a potential overbought condition soon. However, this does not necessarily mean a downward reversal will occur, at least not until a bearish divergence happens.
Sentiment Analysis
The Coinbase Premium Index is a metric that measures the difference between Bitcoin's price on Coinbase and that on Binance. The chart shows that the index has mostly printed positive values since the start of the current rally in April, indicating significant demand from American investors. Historical data suggests that positive values in the Coinbase Premium Index have frequently led to price rallies. Therefore, the current situation suggests that the probability of further bullish price movement is higher than a reversal, and market sentiment supports the upward price action observed on the technical charts.
Current trends and market sentiment regarding Ethereum suggest the potential for further growth; however, there is also a risk of a pullback as key levels are reached. Investors should closely monitor market changes.
