Bitcoin has officially hit the historic $100,000 mark for the first time. Bulls are already targeting levels beyond $103k at the time of writing. As the focus has now shifted to Bitcoin, the second largest cryptocurrency–Ethereum is also showing strong bullish momentum.
Right now, Ethereum is breaking out towards $4,000 and looking at the weekly Ethereum chart, the price is showing strong performance ahead. Ethereum is approaching a major resistance zone around $3.9K to $4K. If it breaks above these levels, the next target would be the previous all-time high, around $4.7K to $4.9K, just under $5,000.
On the 3-day chart, Ethereum is moving above $3.2K, which was resistance and is now acting as support. It also has support around $3.5K. The next resistance zone to watch is between $3,850 and $4,000, which are the previous highs. On the daily chart, Ethereum is still breaking out above previous resistance, now acting as support. The altcoin has seen strong buying around $3,430 to $3,560, confirming the breakout.
There’s a potential bearish divergence forming, but it’s not confirmed yet since we haven’t seen a strong rejection in the RSI. For now, things are looking more bullish than bearish. For short-term gains, it’s crucial to watch the $3,750 level. A confirmed break above this could lead to a surge towards $4,600, and eventually, higher targets.
Looking ahead, Ethereum is forming a cup and handle pattern, and some analysts predict prices could reach $7,400 or even $10,000. However, right now, Ethereum faces resistance at $4000 and we need to break and hold above that level to move higher.
Ethereum’s strong uptrend is supported by large institutional investments, with Ethereum ETF inflows recently surpassing Bitcoin’s. This trend hints at positive price action for Ethereum, and many believe it could reach new highs by the end of the year, possibly even breaking its all-time high.
