Ethereum Resurfacing: Bulls Eye $4K as Analysts Predict Soaring Heights

Ethereum (ETH) has grabbed attention after soaring past $3,200 yesterday, and the second-largest crypto rally has led to more selling pressure as long as investors try to make profits. Amid the price jump and sell-offs, an Ethereum ICO participant, dormant for 8.6 years, has resurfaced.

Crypto analyst Altcoin Sherpa suggested on X (formerly Twitter) that Ethereum could rise to $4,000. His prediction looks possible when considering crypto analyst Bitcoin Ape’s recent Ethereum technical analysis.

$ETH Remember when ETH was like $2200 for weeks on end ? This was always 1 of the easiest safest trades to take. Next areas up are 3500 and 4k. pic.twitter.com/KXSrqat6NY

— Altcoin Sherpa (@AltcoinSherpa) February 26, 2024

In his X post, Bitcoin Ape noted the ADX (average directional index) indicator is currently “very high.” This signals ETH’s bullish trend is strong. This momentum may be strong as the crypto token has since crossed the $3,130 price. Bitcoin Ape highlighted this in his post as ETH’s new resistance level.

It has been a remarkable run for $ETH which has now crossed the $3000 mark for the first time in almost 2 years. The second largest cryptocurrency by value followed the footsteps of $BTC which also saw recent 2-year highs. @Ethereum was rejected at the $3130 price area making… pic.twitter.com/wju1Cxs8c9

— Bitcoin Ape (@bitcoinape_) February 26, 2024

Ethereum price today is $ 3,336.95 with a 24-hour trading volume of $ 20.39B and a market cap of $ 400.94B; the ETH price increased by 3.49% in the last 24 hours.

Ethereum Breaks Resistance, Targets $4K Amid Short Squeeze

Interestingly, the analyst noted Ethereum had already faced four resistance levels in February alone and has broken them all. It has also crossed the $3,130 mark. Although Bitcoin Ape did not give his short-term ETH prediction, he expects it to hit its all-time high (ATH) of $4,891 when the bull run returns fully.

Meanwhile, Altcoin Sherpa isn’t the only one who believes ETH could soon hit $4,000. Standard Chartered Bank had also predicted the crypto token would reach this price level by the time the Spot Ethereum ETF is approved in May.

According to Coinglass, the ETH open interest gained 1.50% to $11.33 billion. While long investors increased sell pressure, short traders braced for a short squeeze. Ethereum saw $66.87 million in total liquidations. Of that, $45.66 million was short liquidations. Since the ETH price shot up greatly, these traders would liquidate and buy back to minimize losses.

Increased purchasing pressure could propel the ETH price higher. However, if bearish, these short traders would start dumping holdings, furthering the downfall. Extreme volatility could ensue in the coming days.

Related Reading | Bitcoin Surges Beyond $57K: Institutional Interest Soars