Is ETH poised to break the $4,000 resistance and hit a new all-time high? (Ethereum Price Analysis)

ethereum price has been gaining bullish momentum recently after experiencing a correction in recent months.

With the asset approaching its recent high, investors are hoping for new records, but breaking the $4,000 resistance appears more difficult than expected.

Technical analysis

By Commercial fury

The daily chart

On the daily chart, some time ago the price broke the upper boundary of the large descending channel. The market has been consolidating since then, but there are no signs of a deep correction.

With the $3,600 area becoming a support level, the market will likely surpass the key $4,000 resistance zone. In this case, market participants may be optimistic that a medium-term rally towards the all-time high of $4,800 could soon begin.

The 4 hour chart

The 4-hour chart is also showing some bullish signs. The price has been falling within a bullish flag pattern this week. However, it apparently breaks the flag to the upside, a classic bullish continuation signal.

With the Relative Strength Index also about to surpass 50%, momentum is also shifting in favor of a bullish move. Therefore, if things do not change drastically, it could only be a matter of time before the price breaks the $4,000 resistance level.

Analysis of feelings

By shayan

Open interest

ethereum price saw a rapid impulsive rise last week, approaching the $4,000 mark. This bullish trend has sparked renewed demand and increased buyer activity as traders look for substantial profits.

The accompanying chart highlights ethereum's open interest, a crucial metric for gauging futures market sentiment. Generally, higher open interest values ​​are associated with bullish sentiment, while extremely high values ​​can lead to higher volatility and potential liquidation cascades.

The chart reveals a sharp rise in open interest along with the recent bullish run. While this increase in open interest typically indicates strong bullish sentiment, it also introduces potential volatility and the risk of sudden, unexpected price movements in either direction. Given the high open interest values ​​and inherent risks of higher volatility, it is advisable for investors to manage their risk carefully in the short term.

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