Bullish momentum is taking Ethereum (ETH) to a critical resistance level of $4,100. Ethereum prices are up around $3,947 at time of writing, but are continuously recovering from their pierce below $3,670 and are in taking over the $100-day Simple Moving Average (SMA), indicating firm bullish trend.
The psychological and technical barrier for this price action is $4,100 and traders are closely monitoring the action. This has been historically a challenge, but with growing buyer confidence and strong market sentiment we might see a breakthrough in this level.
Ethereum Bulls Eye $4,100 Breakout For Fresh Gains
A successful $4,100 breach will pave the way for Ethereum to reach above targets, such as the $4,863 resistance area. The bullish outlook is given further support by the 4 hour Relative Strength Index (RSI), which rises from 53% to 63% to show that more buying is taking place. This rise in RSI is a result of changing market dynamics in favour of the bulls and they look likely to take back control.
Ethereum is a market leader in market capitalization with a figure of $475 billion, and a 24 hour trading volume of $30 billion, exhibiting immense investor participation and top liquidity. Further upside is reinforced if Ethereum continues to rally above critical hurdles.
But an inability to push above $4,100 could be a pullback and lower support levels could give further reason to doubt the rally. Cautious traders are now prepared for potential volatility at this decisively price point.
This would be a huge shift in market dynamics, Ethereum would break out to a new level and a fresh bull run could kickstart. Alternatively, a rejection could be price taken and short term market sentiment reassessed.
The stakes are high as Ethereum inches ever closer to this crucial point. Looking into the coming days, it will be determined if the bulls are able to take down this main resistance and usher ETH into a new phase of growth.
