Ethereum

bullish

Gains

<p>Ethereum is showing strong bullish momentum, driven by an influx of buyers. However, as the price nears a significant resistance level at $4K, market participants should anticipate a period of consolidation with the potential for heightened volatility.</p>
<h2 id="technical-analysis">Technical Analysis</h2>
<p>By <a href="https://www.linkedin.com/in/shayan-navabi-522107248/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">Shayan</a></p>
<h3 id="the-weekly-chart">The Weekly Chart</h3>
<p>Ethereum has experienced an impulsive uptrend, fueled by buying activity near the $2.5K support region. This movement has led to a breakout above the key 100-day and 200-day moving averages, signaling a shift in market sentiment and confirming the buyers’ dominance. The asset is approaching the $4K resistance zone, a crucial psychological and technical level, likely filled with substantial supply.</p>
<p>The $4K threshold is a probable distribution zone for long-term holders looking to take profits. A consolidation phase around this level will likely give the market time to absorb selling pressure. However, a liquidity pool above $4K could trigger a short squeeze if breached, potentially driving Ethereum toward its all-time high of $4.9K.<a href="https://cryptopotato.com/wp-content/uploads/2024/12/ETH-W-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"></a></p>
<h3 id="the-4-hour-chart">The 4-Hour Chart</h3>
<p>On the 4-hour timeframe, ETHs price action reflects a Wyckoff accumulation pattern within the $2K-$2.8K range, culminating in a breakout and an impulsive rally past the $3.5K decisive threshold. The asset has also broken above the upper boundary of a bearish wedge pattern, a bullish signal, and has since completed a pullback.</p>
<p>If this correction holds and buying pressure continues, Ethereum will likely extend its uptrend toward the $4K resistance. However, caution is warranted, as a bearish divergence between the RSI indicator and the price suggests a waning bullish momentum. This divergence indicates that the market may face a period of consolidation before determining its next significant move.<a href="https://cryptopotato.com/wp-content/uploads/2024/12/ETH-4H-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img class="aligncenter size-full wp-image-373260" src="https://cryptopotato.com/wp-content/uploads/2024/12/ETH-4H-scaled.jpg" alt="" width="2560" height="1307" srcset="https://cryptopotato.com/wp-content/uploads/2024/12/ETH-4H-scaled.jpg 2560w, https://cryptopotato.com/wp-content/uploads/2024/12/ETH-4H-300x153.jpg 300w, https://cryptopotato.com/wp-content/uploads/2024/12/ETH-4H-1024x523.jpg 1024w, https://cryptopotato.com/wp-content/uploads/2024/12/ETH-4H-768x392.jpg 768w, https://cryptopotato.com/wp-content/uploads/2024/12/ETH-4H-1536x784.jpg 1536w, https://cryptopotato.com/wp-content/uploads/2024/12/ETH-4H-2048x1046.jpg 2048w, https://cryptopotato.com/wp-content/uploads/2024/12/ETH-4H-50x26.jpg 50w" sizes="(max-width: 2560px) 100vw, 2560px"></a></p>
<h2 id="onchain-analysis">Onchain Analysis</h2>
<p>By <a href="https://www.linkedin.com/in/shayan-navabi-522107248/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">Shayan</a></p>
<p>The behavior observed in Ethereum’s price movement, particularly the failure to drop below the $3.3K level, aligns with significant liquidity below that point, as seen in the Binance liquidation heatmap. This liquidity likely consists of stop-loss orders and liquidation prices for large traders, or whales, who actively defend their positions to prevent a cascade of liquidations.</p>
<p>Similarly, the $4K level is another critical juncture with substantial liquidity, likely tied to short positions established in anticipation of resistance. Should the asset breach the $4K level, these shorts may be forced to cover their positions, triggering a short-liquidation cascade. This could lead to an impulsive surge, as those positions are unwound, and the market quickly moves higher.<a href="https://cryptopotato.com/wp-content/uploads/2024/12/Binance_ETH_USDT_Liquidation_Heatmap2_week_2024_12_03_12_01_14-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img class="aligncenter size-full wp-image-373259" src="https://cryptopotato.com/wp-content/uploads/2024/12/Binance_ETH_USDT_Liquidation_Heatmap2_week_2024_12_03_12_01_14-scaled.jpg" alt="" width="2560" height="1877" srcset="https://cryptopotato.com/wp-content/uploads/2024/12/Binance_ETH_USDT_Liquidation_Heatmap2_week_2024_12_03_12_01_14-scaled.jpg 2560w, https://cryptopotato.com/wp-content/uploads/2024/12/Binance_ETH_USDT_Liquidation_Heatmap2_week_2024_12_03_12_01_14-300x220.jpg 300w, https://cryptopotato.com/wp-content/uploads/2024/12/Binance_ETH_USDT_Liquidation_Heatmap2_week_2024_12_03_12_01_14-1024x751.jpg 1024w, https://cryptopotato.com/wp-content/uploads/2024/12/Binance_ETH_USDT_Liquidation_Heatmap2_week_2024_12_03_12_01_14-768x563.jpg 768w, https://cryptopotato.com/wp-content/uploads/2024/12/Binance_ETH_USDT_Liquidation_Heatmap2_week_2024_12_03_12_01_14-1536x1126.jpg 1536w, https://cryptopotato.com/wp-content/uploads/2024/12/Binance_ETH_USDT_Liquidation_Heatmap2_week_2024_12_03_12_01_14-2048x1502.jpg 2048w, https://cryptopotato.com/wp-content/uploads/2024/12/Binance_ETH_USDT_Liquidation_Heatmap2_week_2024_12_03_12_01_14-50x37.jpg 50w" sizes="(max-width: 2560px) 100vw, 2560px"></a></p>
<p>The post <a href="https://cryptopotato.com/ethereum-price-analysis-eth-gains-9-weekly-but-the-road-to-4k-has-these-obstacles/" rel="noopener noreferrer nofollow">Ethereum Price Analysis: ETH Gains 9% Weekly But The Road to $4K Has These Obstacles</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.</p>

Ethereum Price Analysis: ETH Gains 9% Weekly But The Road to $4K Has These Obstacles

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