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HomeCrypto NewsAnalysisEthereum Price Targets $4,000 Amid Wedge Breakout Chances

Ethereum Price Targets $4,000 Amid Wedge Breakout Chances

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With a potential double-bottom reversal in play, could Ethereum price break out of its wedge pattern and surge toward the $4,000 mark?

Amid increased volatility in the crypto market, Ethereum briefly retests the $3,000 level. As it shows signs of a fresh intraday recovery, bulls are presenting solid reversal opportunities. Will this reversal rally push Ethereum past its local resistance trendline for a breakout?

Ethereum Price Analysis Hints at Breakout Potential

On the 4-hour chart, Ethereum’s price trend shows a bullish failure to sustain above the $3,200 level. This led to a retest of the $3,000 level, with the 24-hour low at $3,039. However, the recent recovery has driven the price to $3,143.

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Ethereum Price Chart
Ethereum Price Chart

Along with the recovery, the price trend highlights a potential double-bottom reversal from the psychological support level. Additionally, the double-bottom pattern is accompanied by a bullish divergence in the 4-hour RSI, further increasing the likelihood of an upside continuation.

Ethereum Derivatives Market: Mixed Signals

Amid the growing volatility, speculations in the derivatives market are also on the increase. Ethereum’s Open Interest has decreased by 1.92%, standing at $30.40 billion, but the funding rate remains stable at 0.0076%.

Ethereum Derivatives
Ethereum Derivatives

Ethereum ETFs Register Net-Zero Flow

As Ethereum derivatives give mixed signals, the US spot Ethereum ETFs make a surprising move. On January 28, all nine Ethereum ETFs registered a net-zero flow.

Meanwhile, the cumulative net inflow of the Ethereum ETFs remained positive, with BlackRock leading the way with $3.99 billion. However, Grayscale Mini Ethereum Trust remains the sole ETF with a negative net cumulative flow of $3.85 billion.

ETH Price Targets

Ethereum remains trapped within a larger falling wedge pattern, but the double-bottom reversal suggests a potential bullish resurgence that could challenge the overhead resistance trendline. Ethereum’s price could see a high-momentum recovery if a breakout rally occurs.

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Based on Fibonacci levels, Ethereum’s recovery rally might target the 61.80% Fibonacci level at $3,693, followed by the critical resistance at $4,108.

Conversely, if bearish momentum continues below the local support trendline, Ethereum could test the $2,900 support level, followed by $2,850.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Author

Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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