- Ethereum trades in the $3.8K zone over the past 24 hours.
- The market saw $85.87 million worth of Ethereum liquidated.
Following a period of consolidation within $99K–$95K, Bitcoin touched the $100K mark on December 5, propelling the second largest cryptocurrency, Ethereum, and other leading altcoins to new highs. ETH has been marking its upward trajectory for the past few days.
Analysts believe that if Ethereum could stage strong bullish signals, it could not only hit $4K but also have the potential to reach the $5K level. Despite the minimal dips, ETH climbed higher following Bitcoin’s momentum. The altcoin looks forward to extending its gains.
Notably, Ethereum price has rallied to the $3.9K range, opening the gate to achieve more gains in the upcoming altcoin season. An immediate catch at $3.9K could target $4K.
As of Friday, December 6, Ethereum’s price has spiked by 1.22%, testing a high and low of $3,683 and $3,956, respectively. At press time, ETH trades at $3,898. In the meantime, the daily trading volume of ETH stays at $53.59 billion. The market also observed a liquidation of $85.87 million worth of Ethereum during this frame.
Is $4K Within Reach for ETH?
Ethereum’s current market sentiment is neutral, with the daily relative strength index (RSI) at 62.95. If the value increases, ETH might enter the overbought zone. Besides, the altcoin’s daily window reveals the short-term 50-day moving average is laid over the long-term 200-day moving average at $3,690 and $3,236, respectively.
It is crucial to observe the technical analysis of the ETH/USDT trading pair, exposing the brief bullish momentum. The Moving Average Convergence Divergence (MACD) line has compactly crossed the signal line. This crossover likely points to an approaching market upturn.
ETH chart (Source: TradingView)
Additionally, the Chaikin Money Flow (CMF) indicator, which accesses the money flow, is located at 0.14, signaling a positive money flow and demand in the market. Also, Ethereum’s daily trading volume has dropped by over 15.93%.
The four-hour price graph exhibits a brief upside momentum. If ETH’s current uptrend builds up, it could break into the $4K level. Eventually, it might bring in a testing session of resistance to hit its previous all-time high at $4,891, which was reached three years ago.
On the downside, if the current bullish price movement is not strong enough and the ETH price reverses, despite running toward $4,000, it could probably find the immediate support zone around $3.6K. The altcoin may even slip toward the $3.4K mark.
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