Ethereum price faces resistance at $4,000, potential pullback ahead
ETH price analysis
Ethereum's price is encountering resistance around the $4,000 level, following an 8% rally last week.
The cryptocurrency briefly retested this level on Friday but faced rejection during the weekend, with the price currently trading around $3,948 as of Monday.
The $4,000 price point has been a critical resistance level for Ethereum. Should this resistance persist, ETH could experience a pullback, potentially testing lower support levels. The immediate daily support level is seen at $3,721, a key point to watch for any further downside movement.
The relative strength index (RSI) on the daily chart is currently reading 69, dipping after rejecting the overbought territory at 70. This suggests a weakening of bullish momentum and increases the likelihood of a short-term price decline.
However, if Ethereum manages to rally and close above $4,000, the trend could shift towards the upside. In such a scenario, ETH could target the next significant resistance at $4,200, a level last seen during previous bullish phases.
In summary, Ethereum’s near-term price action is highly dependent on whether it can break above $4,000 or if it will face a pullback to retest lower levels. Traders should watch for potential price reversals or breakouts as key indicators of the next move.
Ethereum has traditionally shown greater volatility than Bitcoin, making ETH investments riskier but potentially offering higher returns. ETH Long-term price predictions can change, as they are based on current market trends and updated periodically to reflect market shifts.
