Hidden Details Pointing to Possible ETH Price Rally to $4K: Ethereum Price Analysis

The price of ethereum has skyrocketed significantly following the approval of its ETF. However, the market has not yet surpassed its recent high.

Technical analysis

By Commercial fury

The daily chart

On the daily chart, the price broke out of the large descending channel in May. However, since then it has been consolidating between the levels of 3,600 and 4,000 dollars, without being able to continue its upward trajectory. However, as the Relative Strength Index continues to show values ​​above 50%, momentum appears to favor further continuation beyond the $4,000 resistance level and towards a new all-time high.

The 4 hour chart

Meanwhile, on the 4-hour time frame, the price action has been choppy over the past few weeks. The market has already tested the $4,000 area a couple of times, but has not managed to surpass it and is hovering around the $3,800 mark.

However, the 4-hour RSI has recently broken above the 50% level, indicating that momentum is turning bullish. Therefore, a break above the $4,000 level seems likely in the near term.

Analysis of feelings

By Commercial fury

exchange reserve

While ethereum price has been consolidating below the $4,000 resistance level, important events are apparently unfolding in the background. This chart shows the eth exchange reserve, which measures the total amount of eth held in exchange wallets.

It is evident that the foreign exchange reserve has recently plummeted below its 30-day moving average. This aggressive decline points to possible accumulation that will occur during the current consolidation as the market prepares to move higher.

Overall, this significant decline in currency reserves can be very bullish for eth as it reduces the supply side of the equation.

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