Ethereum has recently experienced strong volatility, with the price currently trading near the $4,260 level after losing some of its upward momentum that pushed it to test levels above $4,400. This slight retreat does not hide the fact that the currency still maintains a generally positive trajectory supported by increasing institutional flows and growing interest from major investors.

Important technical levels:

Technically, the price of Ethereum is moving above strong support at $4,200, while the nearest resistance remains between $4,300 and $4,350, which is a sensitive area that determines the direction of the upcoming price. A clear break of this barrier could pave the way towards the larger resistance at $4,755, which represents the peak of the last week. Overcoming this obstacle would enhance the chances of rising to levels of $5,500–$6,000. However, if the price fails to hold, we may see a return to test support levels at $4,000–$3,800.

On the other hand, levels of $4,200–$4,000 appear as the first line of defense, and if the market loses this support, the correction may deepen towards $3,800 and even $3,350–$3,400 in a more negative scenario.

Reading the indicators:

Moving averages still provide clear bullish signals reflecting the continuation of the positive trend in the medium and long term, but some other indicators like the MACD have shown relative weakness in momentum, while the Relative Strength Index (RSI) remains close to the neutral zone, indicating that the market has not yet entered a state of overbought.

What supports optimism?

In addition to technical analysis, fundamental factors increase investor confidence as major financial institutions continue to increase their exposure to Ethereum through ETF funds, and expectations of the upcoming network upgrade enhance hopes for increased usage and adoption.

In summary, Ethereum is now at a pivotal point; a clear breakthrough above $4,800 could mark the beginning of a new rally towards historical levels, while any break below the $4,000 support could signal a correction phase lasting several weeks. In any case, Ethereum remains one of the strongest digital assets that combine technical momentum and fundamental support, making it a focal point for investors at this time.

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