Ethereum Price Nears $4K Resistance, Eyes Rally to $6.85K Should This Happen

3 mins mins

Key Insights:

Experts predict that Ethereum’s breakout above $4K could push it into the $10K+ territory.
Volume confirmation for Ethereum’s Broadening Wedge pattern signals a potential rally to $6,850.
Ethereum liquidity at $3,900 shows strong buy-side interest, fueling expectations of a price surge.

Ethereum price is currently facing a crucial test near the $4,000 resistance level, a key area that has repeatedly rejected the price in the past. This resistance zone has been difficult for Ethereum to surpass, with years of price compression forming a pattern that could eventually result in a significant upward move.

According to Merlijn The Trader, Ethereum is circling the $4,000 resistance after 7 failed attempts. He suggested that if the price breaks through this level, Ethereum could swiftly move into the $10,000+ territory.

As Merlijn points out, the setup doesn’t get more obvious than this, emphasizing that the market is ready for a breakout. The ongoing price action has led many to believe that Ethereum’s momentum could soon lead to a significant rally.

Broader Wedge Breakout in Progress

Jonathan Carter, another crypto expert, pointed out that Ethereum is forming a Broadening Wedge pattern in the 3-day timeframe. He indicated that the cryptocurrency is consolidating near a key resistance zone, showing firm conviction.

Notably, Carter suggests the wedge breakout and volume confirmation could push Ethereum’s price to targets between $4,700 and $6,850. Carter emphasized that smart money is already accumulating Ethereum in preparation for a potential rally.

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Despite this, Ethereum is trading at $3,682.17 as of the time of writing, reflecting a 2.68% increase in the last 24 hours. Traders and investors are monitoring this level to assess whether the selling pressure will continue or if Ethereum will successfully break through the $4,000 resistance.

Ethereum Eyes $3,900 Liquidity

As per trader TedPillows, Ethereum liquidity is reportedly concentrated around the $3,900 mark. TedPillows suggests that it’s only a matter of time before Ethereum moves toward this level. According to the analyst’s chart, Ethereum’s price has shown strong indications that it could break through this liquidity zone.

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However, this level has proven to be a significant support and resistance point, with Ethereum showing resilience above the $3,600 mark. The strong buy-side interest around the $3,900 level could signal further bullish momentum if Ethereum successfully tests and holds this range.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.