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With an overnight surge and a bullish engulfing candle, Ethereum bounces back after a minor consolidation. Will this reversal give a breakout run to $4,000?
As Bitcoin pushes to a new all-time high of $99,500, Ethereum is steadily gaining steam. Today, Ethereum’s market cap surpassed $400 billion, marking a significant milestone.
The growing bullish momentum suggests Ethereum could be gearing up for a major rally, possibly targeting $4,000. Will this recovery run lead to a new 52-week high as the broader market recovers? Let’s find out.
Ethereum Price Analysis
On the daily chart, Ethereum has shown a strong resurgence in buying pressure. This led to a massive bullish engulfing candle, which surged 9.36% last night.
At the time of writing, Ethereum is trading at $3,383, reflecting a modest intraday gain of 0.71%. The bulls have regained control above the $3,000 level, pushing the price higher after a brief consolidation phase.
The bullish rally has completed a U-shaped reversal and is heading towards the 78.60% Fibonacci level, priced at $3,553. This level acts as the next immediate resistance.
As the buying pressure grows, the 50-day EMA has crossed above the 100-day and 200-day EMAs, signaling a bullish crossover. Furthermore, the increasing proximity of the 100 and 200 EMAs teases a bullish crossover.
As the average lines are preparing to regain bullish alignment, they give a buy signal for Ethereum. Furthermore, despite recent fluctuations, the MACD and signal line have avoided a bearish crossover, showing signs of bullish momentum as the market remains in recovery.
Dormant Whale Resurfaces to Sell Ethereum
While the price action has been bullish, the behavior of Ethereum’s largest holders may cast a shadow on market sentiment. A notable whale, dormant for eight years, has resurfaced to offload a significant portion of their Ethereum holdings.
This whale accumulated 398,889 ETH between January and March 2018, with an average purchase price near $6. As of now, the whale has sold 73,356 ETH, valued at $224.42 million, holding back 325,533 ETH worth approximately $1.1 billion.
Ethereum Breakout Rally to Target $4,000
According to Fibonacci analysis, Ethereum’s immediate target is the $3,553 resistance level. If the bulls can break above this level, the next logical target will be the psychological $4,000 mark. Hence, the ongoing uptrend shows increased chances of creating a 52-week high above $4,093.
However, if the rally stalls at $3,553, the price could see a retracement back to the $3,000 level, testing the support zone.