ethereum (eth), the second-largest cryptocurrency, has reached a major milestone by touching $4,000, marking a two-year high and closing the gap towards its all-time high (ATH).
With bitcoin (btc) also hitting a new all-time high of $70,100, the cryptocurrency market is witnessing an explosive bull run. Technical analysis suggests that ethereum is poised to break through key resistance levels, positioning it closer to its previous all-time high of $4,878.
ethereum Daily Chart Indicates Clear Path Towards $4,400
While ethereum has yet to reach its previous all-time high, reaching the $4,000 mark represents notable progress for the cryptocurrency. The current price level reflects a 19% difference from its ATH, indicating the potential for further price appreciation amid the ongoing uptrend.
Rekt Capital Technical Analyst reflexes Strong ethereum price action, highlighting successful retests of the $3,500 support level. The cryptocurrency rose to $3,830 during this period, reinforcing the conviction of a possible breakthrough. Rekt Capital suggests that ethereum is steadily approaching the red-red macro resistance range between $4200 and $4600, which would position it just below its previous ATH.
Consolidating above the $4,000 mark presents an immediate challenge for ethereum, as increased price volatility may hinder further upward movement. However, if this resistance is broken, the next hurdles lie at $4,060 and $4,100.
Analysis of the daily chart of eth/USD indicates a clear path towards the $4,400 area. Following these levels, the cryptocurrency would face additional resistance at $4,528, $4,629, and $4,731 before retesting its all-time high.
Overall, the next direction of ethereum price remains uncertain as the possibility of a price correction looms. Such a correction could potentially threaten the gains made over the past year, which amount to an impressive 154%. However, given the long-term investment interest in the token, it remains well positioned for near-term price gains.
Featured image from Shutterstock, chart from TradingView.com
