ETH Nears $4000 As Market Goes to the Bulls
Ethereum (ETH) seems primed to begin the new month on a high note as the price of the second biggest cryptocurrency continues a steady upsurge that shows no signs of ending soon.
Following an increase of more than 20% in price over the past 36 hours, all signs point to the likelihood of ETH breaking the $4000 resistance.
Increased Buying Pressure Sparks Breakout
Though Ethereum (ETH) is now on stable ground after crossing the pivotal $3,350 and $3,380 resistance barriers, it wasn’t an easy ride getting there. With a series of higher lows indicating that the world’s second-largest cryptocurrency was gunning for an uptrend, analysts believed it would take crossing the $3,350 resistance zone for the price to accelerate any further.
The extended period it took before the ETH price cleared the $3,350 barrier resulted in the formation of an ascending triangle, a notably bullish chart pattern on Ethereum’s 4-hour chart.
Ethereum was able to break through the overhead resistance following a surge in the demand for ETH, a positively bullish escape from its extended consolidation.
If the bullish trend persists, another opening might appear beyond the newly formed $3,500 resistance level. With the formation of its latest high, chart patterns indicate that ETH prices could increase by another 8%, rising enough to graze or maybe even cross its ATH of $4,362 which it set on May 11.
Support Zone Limits Massive Dips
There are even more reasons why an Ethereum bull is likely, especially considering predictions made by IntoTheBlock’s IOMAP model. Based on the IOMAP, Ethereum may be leading a substantial supply barrier which might result in the continuation of its bullish trend.
Almost 11.77 million Ethereum units were purchased by an estimated 1.3 million addresses on the blockchain as the price moved between $3,120 and $3,230.
This area could function as a cushion for any downward inclinations the ETH price might show in the future. Ethereum holders within this range are likely to go to extra lengths to keep making profits, including obtaining more tokens to cause an upward surge in prices.
As long as this demand barrier is maintained, the possibility of an increase in the number of profit-taking investors remains low.
While another support zone is being formed close to $3,425, and given the absence of notable resistance levels ahead, it is not unreasonable to assume the uptrend will continue.
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