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Ethereum's price has surpassed the $4000 level for the first time in eight months, a technical development that draws attention to the cryptocurrency market as a whole. This comes with an increase in trading volumes, reinforcing the validity of the breakout and raising questions about the next price levels, considering the regulatory framework and policies of trading platforms like Binance.
General Technical Analysis
View on the Daily Chart: Ethereum has maintained an upward trajectory since mid-June, with higher highs and limited pullbacks. Breaking the range between $3950 and $4000 has established a bullish pattern, with expectations to target a range between $4350 and $4400.
Key Technical Indicators:
RSI (14) at 62.25, reflecting upward momentum without entering the overbought zone.
MACD (12,26) at 44.17 and in the buying zone, indicating continued positive momentum.
BBP at 77.76, indicating clear buying pressure supporting the upward trend.
Volume and Technical Confirmation: The daily volume is around $36.8 billion over the last 24 hours, about 40% higher than the average over the past two weeks, which enhances confidence in the breakout. Additionally, the $4000 level coincides with the 61.8% Fibonacci retracement of the previous decline, giving the level additional technical significance.
Support, Resistances, and Potential Scenarios
Immediate Support: $3,950, followed by $3,800 as a major support level.
Nearest Resistance: $4,350, then the psychological level at $4,500.
Potential Scenarios:
Bullish Scenario: If Ethereum closes daily above $4000 with current indicator support, it may target $4350, then $4500. A breakout above $4500 opens the door to levels ranging between $4700 and $4850.
Bearish Scenario: If the price fails to maintain support at $3950 and a downward trading volume occurs, it may retreat to $3800 or lower.
Summary
The technical framework shows strong upward momentum supported by positive indicators and high trading volume, in addition to an important technical crossover at $4000. However, the path remains heavily reliant on the stability of support at $3950 and the development of indicators in the coming weeks, within the framework of compliance, regulatory policies, and avoiding any unjustified speculation or potential manipulation.
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