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Ethereum Approaching $4,000: Will Bulls Shatter 2021 Highs?

Ethereum continues to expand. At spot rates, ETH is approaching $4,000, but buyers are aiming for higher. Trackers show that the coin was up 14% in the previous week but relatively steady in the past day. Its dominance is also down to 18.1%. 

At press time, the coin faces strong rejection at $4,000. However, should buyers break above this level, ideally with rising volume; the next feasible target will be $5,000, and even $10,000. So far, trading volume is decent, registering $24.3 billion in the last 24 hours, adding 14%.

Ethereum price chart for March 9

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Ethereum traders are overly optimistic, citing the following fundamental events:

  • Decentralized finance (DeFi) and non-fungible token (NFT) minting catalyzed demand in the last bull cycle. After the depression throughout 2022, DeFi and NFT total value locked (TVL) is gaining momentum. Despite scaling challenges, Ethereum dominates these activities. As DeFi TVL rises, the demand for ETH—used for paying gas—will increase in tandem, lifting ETH even higher.
  • Recent news shows that despite the United States Securities and Exchange Commission (SEC) postponing its ruling on spot Ethereum exchange-traded funds (ETFs), it met with Coinbase. Discussions revolved around the product, with the exchange’s representatives asserting their confidence that Ethereum is not prone to manipulation.

Ethereum Price Analysis

In the daily chart, resistance is at around $4,000. The upside momentum is clear, as the diverging Bollinger Bands (BB) show. At the same time, since bull bars are along the upper BB, it suggests that buyers are clearly in control and the momentum is strong. There could be entries above the $3,500 to $3,700 support area.

In the one-hour chart, ETH/USD prices have been moving horizontally for the better part of the Asian session. From this range, resistance is at $3,990, while support lies at $3,870. A decisive breakout in either direction can shape price action in the short term. 

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ABOUT THE AUTHOR See More
Dalmas Ngetich
Dalmas Ngetich
Technical Analyst and News Reporter
Dalmas is a technical analyst and news reporter covering Forex, commodities, crypto, NFTs, blockchain, DeFi, and blockchain.
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