Ethereum Flirts with $4K Amid Bullish Market Sentiment

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Ethereum, the second-largest cryptocurrency by market capitalization, exhibits a growing confidence among its investors, as it consolidates near the pivotal $4,000 mark. The digital currency is showing signs of ascent, with the market sentiment bullish, eyeing a breakthrough above the $4,200 threshold.

The recent trading sessions have witnessed Ethereum reaching a new multi-month peak surpassing the $4,080 level, before undergoing a slight retreat. Despite this correction, the cryptocurrency maintains a stance above the significant $4,000 juncture and is well-supported by the 100-hourly Simple Moving Average – indicating a strong bullish trend in the short term.

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Ethereum’s price trajectory has seen a notable recovery from the dip, bouncing back from the neighborhood of $3,850, with a solid base forming around $3,830. Regaining momentum, Ethereum has breezed past the $4,000 resistance level. The currency has not only reclaimed the 50% Fibonacci retracement level of its recent pullback from the high of $4,088 to the low of $3,830, but also managed to eclipse a crucial contracting triangle resistance on the ETH/USD hourly chart.

The cryptocurrency landscape now suggests Ethereum is exhibiting positives well above the 76.4% Fibonacci retracement mark of the same downward trajectory. Holding steady above the $4,020 area could present an opportunity for Ethereum to mount another upward movement. The nearest hurdle lies at the $4,085 resistance zone.

Looking further, the primary major resistance sits near $4,120, and should the bulls manage to pierce through, Ethereum could gather sufficient steam, propelling its price toward the $4,280 level. A sustained push beyond that resistance could potentially set the stage for Ethereum to test the waters at $4,350, with an optimistic outlook hinting at a climb towards the $4,500 landmark.

However, should Ethereum be unable to vault over the $4,085 barricade, a downward price correction could ensue. Under such circumstances, the immediate support hovers around $4,020, with more substantial footing near the $3,965 vicinity, coinciding with the 100 hourly SMA. Dropping further, the next definitive support anticipates at the $3,880 mark. Breaching this level could lead to Ethereum retracting to $3,830, with the possibility of further descent to the $3,740 threshold.

The technical analysis accentuates the bullish momentum, with the Hourly MACD entrenched in the bullish zone. Meanwhile, the Hourly RSI indicates strong momentum, sustaining above the 50 level – a harbinger of potential continued upward movements. The outlined major support level rests at $3,965, while the major resistance level is anticipated at $4,085.