Ethereum continues to exhibit a bullish trend by breaking through key resistance levels and reclaiming the $4K psychological barrier. While short-term corrections are possible, the overall trend favors further growth.
Daily Chart Analysis
After sweeping liquidity beneath the $3.5K level, ETH attracted strong buying interest, igniting a sharp rally. This breakout above the $4K threshold is significant both psychologically and technically.
With the price now trading firmly above $4K, a short-term pullback to retest this area remains a possibility. Such a retracement could serve as a healthy reset before continuing toward the next key resistance at $4.5K.
4-Hour Chart Analysis
Zooming in on the 4-hour chart, ETH’s price has broken through multiple resistance levels with strong bullish conviction, reflecting increased buying momentum. However, the current position suggests the market may be ready for a corrective phase to absorb fresh demand before resuming its climb.
The 0.5–0.618 Fibonacci retracement zone represents a probable support area if a pullback unfolds. Holding this region would strengthen the case for another leg higher, potentially driving the price toward new all-time highs.
Liquidation Analysis
The liquidation analysis indicates that there is a relatively clear path toward Ethereum’s all-time high with no significant liquidity clusters obstructing advancement. However, a significant pocket of liquidity is located near the $3.6K level, likely reflecting liquidation points of long positions accumulated during the recent rally. This area marks a dense concentration of leveraged futures exposure, making it an attractive target for market makers seeking to trigger liquidity events.
Given this setup, a retracement toward the $3.6K zone remains plausible, potentially clearing these positions before the market resumes its upward movement.
Ethereum's price behavior continues to reflect a strong upward trend, although short-term correction possibilities remain. Monitoring key levels is crucial to respond to potential changes in market dynamics.
