Ethereum

bullish

Daily

<p>Ethereum has been oscillating within the critical $3.5K–$4K range, with its price recently finding support near the lower boundary at $3.5K.</p> 
<p>Following this rebound, the bulls are attempting a renewed push toward the $4K resistance level.</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">Shayan</a></p> 
<h3 id="the-daily-chart">The Daily Chart</h3> 
<p>The upward momentum in Ethereum’s price met a pause at the $4K resistance, which has proven to be a key selling zone. This rejection led to a decline toward the lower boundary of the range at $3.5K. However, renewed buying activity at this support has triggered another strong push upward, targeting the $4K threshold.</p> 
<p>The $4K resistance is pivotal, as it aligns with Ethereum’s prior swing highs and has repeatedly snubbed bullish attempts. Consequently, the short-term outlook suggests continued consolidation within the $3.5K–$4K range. A decisive breakout above the $4K level could pave the way for a broader bullish rally.<a href="https://cryptopotato.com/wp-content/uploads/2024/12/ETH-D-2-scaled.jpg" data-wpel-link="internal"></a></p> 
<h3 id="the-4-hour-chart">The 4-Hour Chart</h3> 
<p>In the 4-hour timeframe, ETH faced a sharp rejection at the $4K resistance, resulting in an impulsive decline below the middle boundary of the ascending channel at $3.8K. This move reflects the strong presence of sellers at the $4K level, making it a formidable barrier for buyers.</p> 
<p>Despite this setback, Ethereum found support near the $3.5K level, where buying pressure intensified. The subsequent bullish momentum pushed the price back above the channel’s middle boundary, bringing it close to the $4K resistance once again.</p> 
<p>While buyers remain eager to breach the $4K threshold, bearish divergence on the RSI indicator signals caution. A short-term consolidation below this resistance appears likely before another potential bullish breakout.<a href="https://cryptopotato.com/wp-content/uploads/2024/12/ETH-4H-3-scaled.jpg" data-wpel-link="internal"><img class="aligncenter size-full wp-image-374486" src="https://cryptopotato.com/wp-content/uploads/2024/12/ETH-4H-3-scaled.jpg" alt="" width="2560" height="1307" srcset="https://cryptopotato.com/wp-content/uploads/2024/12/ETH-4H-3-scaled.jpg 2560w, https://cryptopotato.com/wp-content/uploads/2024/12/ETH-4H-3-300x153.jpg 300w, https://cryptopotato.com/wp-content/uploads/2024/12/ETH-4H-3-1024x523.jpg 1024w, https://cryptopotato.com/wp-content/uploads/2024/12/ETH-4H-3-768x392.jpg 768w, https://cryptopotato.com/wp-content/uploads/2024/12/ETH-4H-3-1536x784.jpg 1536w, https://cryptopotato.com/wp-content/uploads/2024/12/ETH-4H-3-2048x1046.jpg 2048w, https://cryptopotato.com/wp-content/uploads/2024/12/ETH-4H-3-50x26.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">Shayan</a></p> 
<p>Ethereum’s price behavior, particularly its stability at the $3.5K support level, reflects the significant liquidity concentrated below this threshold, as highlighted by the Binance liquidation heatmap. Similarly, the $4K resistance level marks another critical zone of liquidity, primarily associated with short positions placed in anticipation of a price rejection.</p> 
<p>These two levels represent the highest concentration of liquidity near the current price. If ETH successfully breaches the $4K resistance, it could trigger a short-liquidation cascade as short-sellers rush to cover their positions. This would likely result in an impulsive price surge as the unwinding of these positions fuels further upward momentum.</p> 
<p>However, a breakout in either direction has the potential to ignite a liquidation cascade, intensifying the subsequent price movement. Given the prevailing market dynamics, a bullish breakout above $4K appears to be the more probable scenario.<a href="https://cryptopotato.com/wp-content/uploads/2024/12/Binance_ETH_USDT_Liquidation_Heatmap2_week_2024_12_12_14_31_23-scaled.jpg" data-wpel-link="internal"><img class="aligncenter size-full wp-image-374487" src="https://cryptopotato.com/wp-content/uploads/2024/12/Binance_ETH_USDT_Liquidation_Heatmap2_week_2024_12_12_14_31_23-scaled.jpg" alt="" width="2560" height="1877" srcset="https://cryptopotato.com/wp-content/uploads/2024/12/Binance_ETH_USDT_Liquidation_Heatmap2_week_2024_12_12_14_31_23-scaled.jpg 2560w, https://cryptopotato.com/wp-content/uploads/2024/12/Binance_ETH_USDT_Liquidation_Heatmap2_week_2024_12_12_14_31_23-300x220.jpg 300w, https://cryptopotato.com/wp-content/uploads/2024/12/Binance_ETH_USDT_Liquidation_Heatmap2_week_2024_12_12_14_31_23-1024x751.jpg 1024w, https://cryptopotato.com/wp-content/uploads/2024/12/Binance_ETH_USDT_Liquidation_Heatmap2_week_2024_12_12_14_31_23-768x563.jpg 768w, https://cryptopotato.com/wp-content/uploads/2024/12/Binance_ETH_USDT_Liquidation_Heatmap2_week_2024_12_12_14_31_23-1536x1126.jpg 1536w, https://cryptopotato.com/wp-content/uploads/2024/12/Binance_ETH_USDT_Liquidation_Heatmap2_week_2024_12_12_14_31_23-2048x1502.jpg 2048w, https://cryptopotato.com/wp-content/uploads/2024/12/Binance_ETH_USDT_Liquidation_Heatmap2_week_2024_12_12_14_31_23-50x37.jpg 50w" sizes="(max-width: 2560px) 100vw, 2560px"></a></p> 
<p>The post <a href="https://cryptopotato.com/eth-seems-primed-to-take-down-4k-after-recent-rebound-ethereum-price-analysis/" rel="nofollow">ETH Seems Primed to Take Down $4K After Recent Rebound: Ethereum Price Analysis</a> appeared first on <a href="https://cryptopotato.com/" rel="nofollow">CryptoPotato</a>.</p>

ETH Seems Primed to Take Down $4K After Recent Rebound: Ethereum Price Analysis

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