- Ethereum struggles below $4,000 as traders await next major move.
- Key resistance levels could push Ethereum to $5,000 soon.
- Institutional interest grows supporting Ethereum’s long-term price potential.
Ethereum has found itself in a tight spot, struggling to maintain its position above the $4,000 mark after a turbulent week. The cryptocurrency experienced a steep drop, falling to as low as $3,825, marking its weakest level in nearly seven weeks. However, the Ethereum quickly rebounded to $4,071 on Friday, following the release of the PCE report, which is a closely-watched inflation gauge by the Federal Reserve.
Despite this recovery, Ethereum’s momentum has stalled, with the price now locked in a tight range between $3,974 and $4,040.
Ethereum’s price action over the past week has been significantly impacted by broader market sentiment, resulting in a 10.07% decline over the week. While Ethereum has stabilized just above $4,000, uncertainty looms.
Ethereum short-term future hinges on key resistance levels, with experts pointing to three crucial price points to watch. According to crypto analyst Ali, Ethereum could see a surge to $5,000 if it successfully breaks through the resistance levels at $4,158, $4,307, and $4,505.
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Institutional Confidence and Growing Ethereum Adoption
Rising institutional interest in Ethereum is helping fuel its long-term potential. BitMine, a major institutional investor, recently increased its stake in Ethereum, now holding 2.42 million ETH, which represents over 2% of the total supply.
This move aligns with broader trends in traditional finance, as institutions like REX Shares and Morgan Stanley are offering new ways for retail and institutional investors to get exposure to Ethereum. These moves are further supported by Ethereum’s technical advancements, including the successful Dencun upgrade, which has significantly boosted Ethereum’s scalability and performance.
Ethereum Market Indicators and Price Action Breakdown
Ethereum’s daily price shows a bearish trend, with a closing price of $3,996.6, reflecting a 0.57% decrease. The price remains below the middle Bollinger Band at $4,358.4, suggesting ongoing downward pressure. The Relative Strength Index (RSI) stands at 37.44, indicating weak buying momentum, though the market is not yet in oversold territory.
Currently, both “BUY” and “SELL” signals are creating uncertainty about the future direction of Ethereum’s price. The close proximity of these signals indicates indecision, and traders are left wondering whether the cryptocurrency will rebound or face further declines.
With mixed market signals, Ethereum’s price action over the next few days will be pivotal in determining whether the bearish trend continues or if the asset can regain momentum and push toward higher levels.
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