$4k is an essential level for Ethereum. Not only has it been a critical resistance and support, but it is also a crucial psychological level, and Ethereum has not seen its sights once since the beginning of this year.
However, there is a good chance that this will happen before April 9, but if not, Ethereum investors may have to wait until next month for the same to happen.
Ethereum marching towards $4k
Trading at $3,493, ETH is only 14.78% away from $4k. While it may sound like it’s pretty close, it actually isn’t. While skyrocketing rallies are typical for cryptocurrencies, they usually occur with coins that have much lesser valuations, not with the second-biggest cryptocurrency in the world.
To put things into perspective, understand that throughout the recent rally, which lasted over 19 days, ETH only gained 38.23%. However, at the same time, it is this bullish trend that also allows for a 14% climb in the next seven days.
Price indicator Bollinger Bands do indicate the possibility of a sustainable rise since the basis is currently acting as support for the candles. The last time this support lasted for more than ten days, ETH witnessed rallies over 60 and 90%.
Additionally, since ETH is in an active compression version, the indicator is showing a bullish trend across the board. Even though it seems to be fading slightly, in the past ETH has still managed to rise, which keeps the hopes alive.
Further backing this is the net unrealized profits of Ethereum. As per the indicator, in the last few days, Ethereum managed to enter the bullish zone of Belief. Historically, an entry into this space is followed by a sustained rally for a while, which is how Ethereum is expected to hit $4k.
On top of that, an immediate trend reversal is unlikely since ETH is far from marking a market top. Market tops occur when more than 95% of the total supply is in profit. Given that this number currently sits at 88.79%, there is no reason to worry about a market top anytime soon.
But the possibility of consolidation looms over the altcoin as its RSI crosses the overbought zone. It might extend in this area for a while, but very soon the uptrend will reverse (ref. Ethereum Price Action).
If this happens and Ethereum fails to cross $4k, expect the same to happen in May unless an external development pushes the price up.
