$ETH The price of Ethereum is approaching the coveted mark of $4,000, but the rally has temporarily stalled.
The market shows signs of saturation, but Ethereum has not yet completed its growth. The current consolidation is likely a short-term pause before a new phase of ascent.
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ETH shows signs of a rally:
Ethereum's trading volume is sharply increasing, indicating a resurgence of interest from retail investors. The ETH to Bitcoin price ratio has dropped nearly 6% this week, and the increase in trading volume resembles the situation of May this year. Such a spike often precedes a local maximum, but this time it could be different.
If trading volume and social activity decline by the end of the week, it may indicate the market is preparing for a new bullish surge. Retail investor impatience and profit-taking could set the stage for the next wave of growth.
The NUPL (Net Unrealized Profit/Loss) indicator shows that ETH is preparing for a significant rally.
When NUPL reaches the threshold of 0.5, it historically signals a pause in the upward trend, followed by a sharp rally.
The price is now approaching this threshold, which previously marked the beginning of a strong rally. The NUPL indicator continues to rise. This is a strong historical precedent, promising a possible new rally.
The price of Ethereum is stagnating;
ETH is currently trading at the threshold of the critical level of $4,000. Investors have been waiting for its breakthrough for the past seven months.
It is expected that despite the consolidation, the token will continue to grow and soon breach this barrier. The bullish trend is supported by positive market sentiment and technical indicators.
As long as Ethereum stays above key support levels, it has a chance to reach $4,000.
If ETH maintains its bullish momentum, a breakout above $4,000 could serve as a catalyst for further growth.
However, if an unexpected sell-off begins, the price may fall below the support of $3,530. In this case, it could drop to $3,131, which would negate the current optimistic forecast.
It is important for bulls to defend this support level and take advantage of the momentum from retail investors.
