Key Takeaways
- ETH trades above $4,100 after gaining about 2% in value.
- The second-largest cryptocurrency by market cap may soon test resistance near $4,400.
Ether Recovers Above $4k
The cryptocurrency market opened the week on a firmer note following a weaker weekend. Bitcoin, the largest cryptocurrency by market cap, is approaching the $112k area, while Ether has reclaimed the key psychological level of $4,000.
Over the past 24 hours, Ether gained nearly 2.5%, and the $3,800 support level held firm despite the release of PCE data. That short-term strength forced liquidation of short positions totaling more than $75 million within a 60-minute period.
Traders are now watching for breakout signals to confirm whether the market’s bullish momentum has fully returned. Ether remains about 17% below its all-time high of $4,953 reached a month ago.
Ethereum Could Extend Its Recovery as Upward Momentum Reemerges
The ETH/USD 4-hour chart still shows bearish characteristics overall, despite the recent short-term recovery. However, bearish pressure appears to be easing and the coin could turn more bullish if current momentum continues.
ETH failed to hold the daily support around $4,232 earlier in the week and dropped about 7.36%, falling toward the $3,800 support level by Thursday. On Friday, Ether also tested the 100-day EMA around $3,863 before recovering over the weekend.
At the time of writing, ETH trades around $4,100 per coin. A relative strength (RS) reading near 54 suggests upward momentum is returning, and MACD lines have moved into positive territory. If Ether sustains the recovery and breaks above the $4,232 resistance, it could extend its rally toward the larger daily resistance and TLQ area around $4,488.
Conversely, if bulls fail to maintain momentum, the market could resume its downward bias and Ethereum may retest the 100-day EMA near $3,863.