coinjournal.net
Key takeaways
- $ETH is trading above $4,100 after adding 2% to its value.
- The second-largest crypto by market cap could rally towards the $4,400 resistance level soon.
Ether recovers above $4k
The cryptocurrency market is having a positive start to the week following a bearish weekend. Bitcoin, the leading crypto by market cap, is heading towards the $112k mark, while Ether has reclaimed the $4k psychological level.
Ether added nearly 2.5% to its value in the last 24 hours, with the $3,800 support level holding despite the PCE data release. The positive performance over the last 24 hours resulted in over $75 million worth of short positions being liquidated in the market within 60 minutes.
Traders are now looking out for signs of a breakout to ensure that the market recovery is back and in full swing. Ether is down by 17% from the all-time high of $4,953 it set a month ago.
Ethereum could extend its recovery as bullish momentum returns
The $ETH/USD 4-hour chart is bearish and efficient despite the coin performing well over the last 24 hours. However, the coin could soon flip bullish as the bearish momentum slowly fades.
$ETH failed to find support around the daily level at $4,232 on Tuesday, losing 7.36% of its value afterwards, and dropping to the $3,800 support level on Thursday. $ETH also retested the support around the 100-day EMA at $3,863 on Friday before recovering on Sunday.
$ETH/USD 4H Chart">
At press time, $ETH is now trading at $4,100 per coin. With the RS at 54, it indicates that the bullish momentum is returning. The MACD lines are also within the positive territory. If $ETH continues its recovery and surges past the $4,232 resistance level, it could extend its rally towards the major daily resistance and TLQ level at $4,488.
However, if the bulls fail to gain momentum, the market could resume its downward trend, and $ETH could retest the 100-day EMA at $3,863.