- Ethereum tests $4,300 resistance, eyeing further price surge ahead.
- On-chain data shows strong investor confidence supporting Ethereum’s bullish momentum.
- Critical $4,182 support level crucial for Ethereum’s next major move.
Ethereum has shown remarkable strength in recent days, bouncing off crucial support levels and positioning itself for a potential breakout. After defending the $3,820 mark, buyers swiftly stepped in, creating a solid base. With Ethereum now testing key resistance levels, the path is clear for a potential surge above $4,300, a critical level that could trigger further upside momentum.
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Ethereum Tests $4,300 Resistance as Bullish Momentum Builds
On the 4-hour chart, Ethereum successfully reclaimed the $4,182 level, which aligns with the 0.382 Fibonacci retracement. This area has now become vital support and is essential for maintaining upward momentum. Ethereum is currently testing resistance between $4,293 and $4,300, which aligns with the 0.5 Fibonacci retracement zone. A decisive breakout above this zone could lead Ethereum towards $4,406, followed by $4,565 at the 0.786 level.
Source: Tradingview
On the downside, support levels are at $4,182 and $4,043. A drop below these levels could bring $3,820 back into focus as a major demand zone. The flattening of moving averages across the 20, 50, 100, and 200-period charts indicates that Ethereum is at a key turning point. Therefore, price action around $4,300 will determine whether the cryptocurrency will continue its upward trajectory.
Investor Sentiment Strengthens Ethereum’s Case for Bullish Continuation
Ethereum’s on-chain metrics suggest that investor sentiment is increasingly bullish, with netflows showing consistent outflows from exchanges. This trend highlights that investors are opting to hold ETH in private wallets or staking environments, thus reducing the available supply for trading and boosting scarcity.
Source: Coinglass
A notable withdrawal of $145.54 million on October 1, when ETH was trading near $4,286.87, points to reduced selling pressure. While occasional inflows have been recorded, they have been less impactful compared to the persistent outflows. This reinforces the notion that Ethereum is being accumulated, which aligns with the growing bullish sentiment surrounding the cryptocurrency.
Ethereum’s Next Move Depends on Holding $4,182 Support
Ethereum’s ability to hold the $4,182–$4,200 range will be key in determining its next move. As long as these support levels hold strong, a breakout above $4,300 remains a real possibility. With investor confidence building and on-chain data suggesting accumulation, the stage is set for a potential surge. However, any failure to maintain support could push the price back toward the $3,820 demand zone, a critical level for buyers to defend.
If Ethereum manages to close above the critical $4,300 level, it will likely confirm bullish continuation, paving the way to higher targets.
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