Ethereum (ETH), the second-largest cryptocurrency, has reached a significant milestone by touching $4,000, marking a two-year high and closing the gap towards its all-time high (ATH).
As Bitcoin (BTC) also reached a new all-time high of $70,100, the cryptocurrency market is witnessing an explosive bull run. Technical analysis suggests that Ethereum is poised to overcome key resistance levels, positioning it closer to its previous all-time high of $4,878.
Ethereum Daily Chart Indicates Clear Path To $4,400
While Ethereum has not yet reached its previous all-time high, achieving the $4,000 mark represents notable progress for the cryptocurrency. The current price level reflects a 19% difference from its ATH, signaling the potential for further price appreciation amid the ongoing bullish trend.
Technical analyst Rekt Capital highlights Ethereum’s strong price action, noting successful retests of the $3,500 support level. The cryptocurrency surged to $3,830 during this period, reinforcing the conviction of a potential breakthrough. Rekt Capital suggests that Ethereum is steadily approaching the red-red macro resistance range between $4,200 and $4,600, which would position it just below its previous ATH.
Consolidating above the $4,000 mark presents an immediate challenge for Ethereum, as increased price volatility may hinder further upward movement. However, should this resistance be breached, the next hurdles are at $4,060 and $4,100.
Analysis of the ETH/USD daily chart indicates a clear path towards the $4,400 zone. Following these levels, the cryptocurrency would face additional resistance at $4,528, $4,629, and $4,731 before potentially retesting its all-time high.
Overall, the next direction for Ethereum’s price remains uncertain as the possibility of a price correction looms. Such a correction could potentially threaten the gains made over the past year, which amount to an impressive 154%. However, given the long-term investment interest in the token, it remains well-positioned for near-term price gains.
Featured image from Shutterstock, chart from TradingView.com