ETH Retakes Key $3.5K Resistance, Can It Hit $4K Next?

ethereum has recently seen a surge in buying activity, finding solid support at the critical $3,500 level, triggering a bullish bounce.

Despite this recovery, the $4,000 resistance remains a major barrier that eth buyers aim to overcome in the medium term.

Technical analysis

By shayan

The daily chart

ethereum price action has been characterized by a notable rebound after finding support at the decisive $3,500 level. This region served as a critical accumulation zone, fostering greater buying pressure and a subsequent rally. As the price rises, the $4,000 resistance emerges as a critical psychological and technical barrier, requiring a decisive breakout to establish a sustained upward trajectory.

Currently, ethereum is consolidating within the $3,500 to $4000 range, indicating a possible breakout in either direction. A successful breach of the $4,000 threshold could set the stage for a fresh rally and affirm the bullish sentiment. On the contrary, a rejection at this level can lead to further consolidation or pullback within the existing range.

The 4 hour chart

On the lower time frame, the ethereum decline found solid support within the key Fibonacci retracement levels of 0.5 ($3,200)–0.618 ($3,000). This support zone attracted significant buying interest, stopping the downtrend and sparking a bullish recovery.

The subsequent accumulation phase has turned into a bullish peak, and ethereum is now targeting the critical resistance of $4,000. This level, which coincides with a previous significant high, is expected to be an area of ​​strong selling pressure.

ethereum price action at the $4,000 level will determine its future trajectory. A successful break above this resistance could lead to a solid rally, while a failure could result in prolonged consolidation or a possible retest of lower support levels near $3,500.

Chain analysis

By shayan

The Taker Buy Sell Ratio, a fundamental metric for assessing sentiment in the futures market, provides information on whether buyers or sellers are more aggressive when executing market orders. Following ethereum's bullish bounce near the $3,000 support, this metric has shown a notable rebound, indicating an increase in market buy orders within the futures market.

This trend suggests that futures market participants are increasingly optimistic about ethereum's near-term price trajectory, expecting the asset to advance towards the $4,000 resistance.

A buyers' bid/sell ratio greater than 1 means that the buyers are overwhelmingly dominant and often align with the start of an uptrend. Current data underlines this shift in sentiment, reflecting increased confidence among traders and an expectation of continued bullish momentum.

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