ETH eyes $4,400 amid market recovery
Key takeaways
- ETH is trading above $4,100 after adding 2% to its value.
- The second-largest crypto by market cap could rally towards the $4,400 resistance level soon.
Ether recovers above $4k
The cryptocurrency market is having a positive start to the week following a bearish weekend. Bitcoin, the leading crypto by market cap, is heading towards the $112k mark, while Ether has reclaimed the $4k psychological level.
Ether added nearly 2.5% to its value in the last 24 hours, with the $3,800 support level holding despite the PCE data release. The positive performance over the last 24 hours resulted in over $75 million worth of short positions being liquidated in the market within 60 minutes.
Traders are now looking out for signs of a breakout to ensure that the market recovery is back and in full swing. Ether is down by 17% from the all-time high of $4,953 it set a month ago.
Ethereum could extend its recovery as bullish momentum returns
The ETH/USD 4-hour chart is bearish and efficient despite the coin performing well over the last 24 hours. However, the coin could soon flip bullish as the bearish momentum slowly fades.
ETH failed to find support around the daily level at $4,232 on Tuesday, losing 7.36% of its value afterwards, and dropping to the $3,800 support level on Thursday. ETH also retested the support around the 100-day EMA at $3,863 on Friday before recovering on Sunday.
At press time, ETH is now trading at $4,100 per coin. With the RS at 54, it indicates that the bullish momentum is returning. The MACD lines are also within the positive territory. If ETH continues its recovery and surges past the $4,232 resistance level, it could extend its rally towards the major daily resistance and TLQ level at $4,488.
However, if the bulls fail to gain momentum, the market could resume its downward trend, and ETH could retest the 100-day EMA at $3,863.
