- Ethereum briefly surpassed $4,000 but returned to previous lows.
- According to one analyst, breaking through the $4.1k resistance could open the way to $6k for ETH.
As December reaches mid-week, the crypto market has lost 3.06% in market capitalization in the last 24 hours. Bitcoin price rose to $109,000 in the first hours and steadily fell to $104,000. The largest altcoin, Ethereum (ETH), followed in BTC’s footsteps and failed to rise above the $4,000 area.
The altcoin is correcting its gains and might struggle to stay above the $3,865 support zone. ETH has formed a high of $4,029, while the low stood at $3,804. Despite the drop, crypto analysts believe that Ethereum could surpass $4.5 thousand and eventually reach $5 thousand.
In particular, Ali’s chart reveals Ethereum price movement within an ascending channel. The $4,100 level acts as the main resistance; A break above this level could trigger bullish momentum, targeting the overhead resistance at $6,000.
Ethereum chose the bearish trajectory of the day, losing more than 3.66% in the last 24 hours. At the time of this publication, ETH is trading at $3,858. Meanwhile, the altcoin’s daily trading volume has reached $37.41 billion. Furthermore, the market has observed a liquidation of Ethereum worth $55.82 million during this period.
ETH to gain or lose momentum
ETH’s four-hour time frame has revealed its rejection at the $4,000 threshold. If the bullish signal regains the lost momentum, the price could test the $4.1K resistance. Assuming the bullish trend holds, Ethereum could target a highly bullish range and rise towards the $4.3K mark.
However, if the current trend continues, Ethereum could form a strong downtrend, falling towards the immediate support of $3,728. A break below that level could trigger further declines, with $3,500 emerging as the crucial support. This could delay ETH’s attempts to recover higher price levels.
Ethereum’s moving average convergence divergence (MACD) line has fallen below the signal line. This crossover signals the asset’s downward correction and is often interpreted by traders as possible selling pressure.
ETH Chart (Source: TradingView)
Furthermore, the Chaikin Money Flow (CMF), a technical indicator that confirms the flow of capital into the asset, stands at 0.01. It hints at minimal positive money flow and a slight bias towards buying activity. Meanwhile, ETH’s daily trading volume has fallen by over 13.32%.
Ethereum’s daily trading window has shown the short-term 50-day moving average above the long-term 200-day moving average. Furthermore, the daily Relative Strength Index (RSI) is at 42.76, inferring that the current altcoin market sentiment is considered neutral, indicating a balanced market.
