Key Takeaways
- ETH is trading above $4,100 after gaining about 2%.
- The second-largest cryptocurrency by market capitalization could soon move toward the $4,400 resistance level.
Ether Recovers Above $4,000
The cryptocurrency market opened the week on a positive note following a weaker weekend. Bitcoin, the largest cryptocurrency by market cap, is eyeing the $112,000 level, while Ether has reclaimed the psychological $4,000 mark.
Over the past 24 hours, Ether has gained nearly 2.5%, holding the $3,800 support level despite the release of PCE data. The recent positive price action triggered liquidations of more than $75 million in short positions within a single hour.
Traders are now watching for clear breakout signals to confirm that the recovery is back on track. Ether remains about 17% below its all-time high of $4,953 reached a month ago.
Ethereum Could Extend Its Recovery If Bullish Momentum Returns
The 4-hour ETH/USD chart shows a prior downtrend, although the coin has performed well in the last 24 hours. As bearish momentum eases, Ether may be poised to turn higher soon.
Earlier in the week, ETH failed to hold the daily level around $4,232, dropping roughly 7.36% and falling to the $3,800 support zone. On Friday, ETH also retested the 100-day EMA near $3,863 before bouncing back over the weekend.
At the time of writing, ETH trades around $4,100 per coin. A relative strength index (RSI) near 54 suggests bullish momentum is returning, and MACD lines are in positive territory. If Ether sustains its recovery and breaks above the $4,232 resistance, it could extend its rally toward the significant daily resistance and TLQ level near $4,488.
Conversely, if buyers fail to gain traction, the market could resume its downward trend and retest the 100-day EMA at $3,863.