Ethereum

Ethereum (ETH) Price On The Verge To Hit $4k, Here What’s Leading The Bullish Trend!

Written by: Elena R

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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Mar 29, 2022

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Since Ethereum has broken its crucial resistance barrier, the currency is on a streak of success. If the ETH price continues the rally, there are high chances that the altcoin will revisit the $4,000 level.

Role of $3,150-level In Ethereum’s Bull Rally!

In just two weeks Ethereum has seen a surge of 34% and since then the currency hasn’t looked back as it has retested the $3,150 level more than 10 times in the last two months. Before testing $3,150, Ethereum established base support just above $3120.

For the first time in the month of May 2021, Ethereum’s price hit $3,150 and this also saw a three-day candlestick with a 23% return. Since May 2021, the altcoin move above or below the $3,150 level has always seen immense volatility, causing either gain or loss.

eth price

Most recently in the month of January 2022, when Ethereum tested the $3,150 level, the currency saw an 18% loss in a single three-day candlestick. Now, as the price is back above the $3,150 level, and with Ethereum experiencing a bullish move, investors are expecting a similar event where Ethereum will retest the $3,600 level.

However, if bulls manage to maintain this level and successfully surpass the $3,600 level, there is a high chance that the uptrend will continue and ETH price will hit the $4,000 level.

What’s Supporting the Ethereum Price Rally?

The supply on exchanges is playing a major role in Ethereum’s price rally. Through this, the number of Ethereum held in centralized institutions is tracked. This tracking will help to determine the potential sell-side pressure.

Hence, if there is a massive supply of Ethereum to such a platform often points toward investors’ interest in the currency. However, since May 2021, the number of Ethereum tokens on exchanges has decreased from 22.09 million to 15.64 million.

This downtrend indicates a drop in the sell-side pressure. Hence, traders like long-term holders are looking forward to positive gains from ETH price.

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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