Key takeaways
- ETH traded above $4,100 after adding about 2% to its value.
- The second-largest cryptocurrency by market cap could move toward the $4,400 resistance level soon.
Ether recovers above $4k
The cryptocurrency market started the week on a positive note following a weaker weekend. Bitcoin, the largest crypto by market cap, moved toward the $112k area, while Ether reclaimed the psychological $4,000 level.
Ether gained nearly 2.5% in the past 24 hours, with the $3,800 support level holding despite the release of PCE data. Strong short-covering wiped out over $75 million in short positions within a 60-minute window during the recent 24-hour rally.
Traders are watching for breakout signs to confirm the recovery is sustainable. Ether remains about 17% below its all-time high of $4,953 set a month ago.
Ethereum could extend recovery as bullish momentum returns
The 4-hour ETH/USD chart shows a downward bias overall, even though the coin has performed well over the last day. That pattern could shift to bullish if the recent downward momentum continues to fade.
ETH lost the daily support around $4,232 on Tuesday, dropping 7.36% afterward and reaching the $3,800 support level on Thursday. On Friday the coin retested the 100-day EMA near $3,863 before bouncing back on Sunday.
At the time of writing, ETH trades around $4,100 per coin. With the RSI at 54, indicators suggest bullish momentum is returning. The MACD line also sits in positive territory. If ETH continues its recovery and breaks above the $4,232 resistance, it could extend the rally toward the next major daily resistance and the TLQ level around $4,488.
If bullish momentum fails to follow through, the market could resume its downward trend and ETH may retest the 100-day EMA near $3,863.