For Ethereum, it was observed earlier this week that the $ 4,050 area is a level of importance, and $ 4,121 may pose resistance as well. The price indeed climbed to meet resistance at the $ 4,120 mark after breaking beyond the descending trendline.
Bitcoin also looked like it had some steam left in it, and could push to the $53k-$54k area. It could be difficult for bulls to push higher on one try. For Ethereum, the move above $4000 was encouraging, and a retest of the same area should be bought up to indicate chances of further gains.
The price broke the $ 4,000 mark, an area of resistance from September highs as well as subsequent new tests. The price has also come out of the downtrend (white) since early December.
The 23.6% Fibonacci retracement level held as resistance on the first test. However, everything was not completely in favor of the bulls. The trading volume has been on a decline even though price climbed past $4000, alongside a downtrend break.
The indicators showed that momentum was bullish but strong demand was not fully present.
Reasoning
The OBV formed a triangular pattern. A move outside of this triangle will likely indicate the direction of the follow-up for Ethereum, whether buyers or sellers are in the driver’s seat. The RSI also formed higher lows in recent days and was finally able to break above the neutral value of 50.
As things stood, the ETH price was above a significant level but still faced resistance at the $4121 mark, with $4350-$4450 being another area of supply. Buying volume has to support any further rise in price, or else market participants would begin to fade the move.
Conclusion
Price action told a bullish story, but trading volume was low, possibly due to the holiday season and people unwilling to take too much risk. Therefore, more clarity would be needed. Bitcoin was also likely to climb slightly higher, however, it faces significant resistance. A rejection and withdrawal of Bitcoin near the $ 54,000 mark could reverse much of the recent gains for ETH.
