- Summary:
- Ethereum price is on the verge of breaking into the $4,000s territory. Multiple indicators signal that that its nowhere but up for ETH.
Ethereum price rose for the second successive session on Thursday, rising to the precinct of the psychological $4,000 mark. The coin traded at $3,932 at press time, with gains of 2.3% on the daily chart. That means ETHUSD is within 3.3% of its year-to-date highs.
Ethereum has ended each of the two weeks in a green candlestick, and is up by 6.1% this week. In addition, ETH price trades above key momentum indicators, including the 10,20, 50 and 100 Exponential Moving Average (EMA) and Volume Weighted Moving Average (VWMA). That has seen it build strong traction, likely supporting further upside.
Strong fundamentals could establish ETH price support at $4,000
Bitcoin’s historic blast past the $100k mark has created a sensational sentiment in the crypto market. Ethereum is not only other cryptocurrency with spot ETF trading in the US markets, and Bitcoin’s milestone moment is likely to trigger an influx of capital into the ETF market.
Ethereum’s ETF attracted $136 million worth of inflows on Wednesday, underlining the growing institutional interest in the asset. The total ETH ETF market cap stands at $12.03 billion as of this writing. However, that figure is likely to rise substantially in the coming days.
Meanwhile, the Ethereum blockchain has seen its DeFi Total Value Locked (TVL) rise by 5% in the last 24 hours to stand at $77.363 billion as per DeFiLlama. That means Ethereum now accounts for more than 57% of the market’s total $135.47 billion TVL. In effect, there is more utility for ETH, which supports further price gains.
Notably, ETH only needs to attain half of its gains this week to breach the $4k mark. With these factors in play, ETH price could flip that mark into support by the end of the week.
Ethereum price prediction
Ethereum price pivots at $3912, with the buyers in control as shown by the RSI.
Resistance: The first hurdle is likely to come at $3,935. However, a stronger bullish momentum could break above that level and test $3,950.
Support: The sellers will be in control if the price breaks below the pivot. In that case, the first support will likely be at $3,890. Breaking below that level will invalidate the upside narrative. Meanwhile, extended control by the sellers could send the price lower to test $3,877.
