Ethereum, the second-largest cryptocurrency, is showing growth as it nears the $4000 resistance level, raising concerns among analysts regarding a potential correction.
Current Situation Analysis
Crypto analyst Michaël van de Poppe highlighted that Ethereum is in a bullish momentum phase but cautioned that the rally might be nearing exhaustion. In a post on X, he noted that ETH is likely to face strong resistance at $4000, potentially triggering a sharp correction once that level is tested and rejected.
Technical Analysis
On the technical side, van de Poppe’s chart indicates that liquidity has already been taken at previous highs, and Ethereum may soon enter a 'target zone' where price action tends to stall or reverse. The RSI also suggests the asset is approaching overbought conditions, adding to the risk of a near-term reversal.
Future of Ethereum
Ethereum’s market cap currently stands at over $455 billion, with 24-hour trading volume exceeding $33.7 billion, signaling strong market activity. However, traders appear cautious, as many are watching for signs of rejection at the $4000 zone before making further moves. Whether ETH can break through the resistance or face a harsh correction remains to be seen, but for now, analysts warn that the next few days could be pivotal for Ethereum’s short-term trend.
In light of current market conditions and analyst forecasts, Ethereum stands at the brink of a major test of the $4000 level, which could significantly influence the direction of its price movement.
