The post 90% of Ethereum Holders Are in Profit-But Here’s Why Holding $4000 Could be Challenging for ETH Price Rally appeared first on Coinpedia Fintech News
The latest rise from the interim lows of around $3,300 has invalidated the bearish trajectory that could have dragged the ETH price below $3200. The token seems to be gearing up for a potential run as the levels stay strong at $3500. On the other hand, the ETF is also having a positive inflow, suggesting growing confidence in the institutions along with market participants.
The ETH ETFs have seen a constant inflow throughout the past week, with more than $200 million compared to that of Bitcoin. The strong inflows into Ethereum are signs of growing confidence in ETH. If the current momentum holds good, it may lead to significant gains in the cycle. Currently, the ETH price has broken up above the crucial range, which suggests a good time ahead for the Ethereum price rally ahead.
The ETH price has surged above the psychological barrier at $3500, and the technicals suggest the token is about to launch a rise to $4000. The RSI continues to range within a rising parallel channel and is about to test the upper threshold. The slow and steady rise indicates the price may also continue to have sustained growth and reach $4000 at the earliest. Besdeis, the upcoming ‘Golden Cross’ substantiates the bullish claim.
What’s Next? Where Will ETH Price Head After Surpassing $4000?
As mentioned above, the ETH price is trading under bullish influence. With the rise in volume and the spot ETF inflows, the price is expected to have a positive impact. The traders are waiting for the second-largest to reach $4000, which raises the question: what could happen next with the Ethereum price rally?
The data from Coinglass suggests the traders are not confident of the ETH price rally after $4000. And as a result, more than a billion shorts have been piled up close to $4000. If the price surpasses these levels, then these shorts are expected to get liquidated, which could offer a huge selling pressure over the token. Therefore, the price may undergo a significant pullback back to the resistance-turned-support levels around $3,800.
If the bulls manage to trigger a rebound, then the Ethereum (ETH) price is expected to reclaim $4000 and head towards a new ATH. Otherwise, the token may remain consolidated below the range, which appears unlikely considering the current trade setup.
