$4k is an essential level for Ethereum. Not only has it been a critical resistance and support, but it’s also a crucial psychological level, and Ethereum hasn’t seen its crosshairs since early this year.
However, there is a reasonable chance that it will happen before April 9, but if not, Ethereum investors may have to wait until the next month for the same to happen.
Ethereum Marches Towards $4k
Trading at $3,493, ETH is only 14.78% away from $4k. While it sounds like it’s pretty close, it actually isn’t. While skyrocketing rallies are typical for cryptocurrencies, they usually occur on coins with much lower valuationsot with the second largest cryptocurrency in the world.
To put things in perspective, understand that during the recent rally, which lasted more than 19 days, ETH gained only 38.23%. At the same time, however, it is this bullishness that also allows it to rise by 14% in the next seven days.
Ethereum Price Promotion | Source: TradingView – Coin-Crypto
Price Indicator Bollinger Bands do indicate the possibility of a sustainable rise as the base currently acts as a support for the candles. The last time this support lasted more than ten days, ETH witnessed rallies above 60 and 90%.
Additionally, since ETH is in an active squeeze release, the indicator is showing bullishness across the board. Although it seems to be declining a bit, ETH has managed to rise in the past, keeping hopes alive.
Further supporting this is Ethereum’s net unrealized gain. According to the indicator, Ethereum has managed to break into Belief’s bullish zone in recent days. Historically, an entry into this space has been followed by an ongoing rally for a while, which is how Ethereum is expected to hit $4k.
Ethereum NUPL | Source: Santiment – Coin-Crypto
In addition, an immediate trend reversal is unlikely as ETH is far from marking a market top. Market peaks occur when more than 95% of the total supply makes a profit. Since that figure currently stands at 88.79%, there is no reason to worry about a market top anytime soon.
Ethereum supply in profit is still below 95% | Source: Santiment – Coin-Crypto
But the possibility of consolidation looms over the altcoin as the RSI breaches the overbought zone. It may overload in that zone for a while, but soon the uptrend will reverse (ref. Ethereum price action).
If this happens and Ethereum fails to cross $4k, expect the same to happen in May unless an outside development pushes the price up.