Ethereum (ETH) To Reach $4,100 : Key Indicators To Watch For Breakout Confirmation

The cryptocurrencies started the week with a bullish trend, breaking out of the price range they had been stuck in since late May.

Sophia Cruz•Thursday, June 6, 2024•2 min read

The cryptocurrencies started the week with a bullish trend, breaking out of the price range they had been stuck in since late May. This partial recovery is attributed to weak economic data from the US, leading to speculation that the Federal Reserve might begin cutting rates in September.

Ethereum (ETH) To Reach $4,100 : Key Indicators To Watch For Breakout Confirmation

Ethereum, the second to the largest cryptocurrency has its unique trajectory amid broader market trends. Crypto traders are eagerly anticipating the launch of Ethereum spot ETFs, which could attract substantial new investments and lead to increased volatility in Ethereum trading in the near future.

At this stage, Ethereum (ETH) is encountering a key resistance zone around $3,835, as shown on the daily chart. This level has consistently held throughout June, with a price action fluctuating between this resistance and the 8-day EMA.

However, a bullish signal is indicated by the Stochastic RSI. The Stoch RSI is now rising after dipping into oversold territory during a recent consolidation. This suggests a potential bounce for ETH, especially if it achieves a clear weekly above the $3,835 resistance zone.

Last month, a similar oversold reading on the Stoch RSI preceded a notable ETH price rally, which coincided with the SEC’s first approval of a spot Bitcoin ETF. Positive news could be key to breaking through its resistance and aiming for the next hurdle near $4,000. Increased buying volume at that level would further reinforce the bullish momentum.

Looking past the immediate resistance, there’s a potential for a bullish scenario to unfold if ETH finds support around $4,000. This could open the door for a surge toward Fibonacci expansion levels, potentially driving ETH into the $4,400-$4,800 range.

However, $3,800 remains a crucial support level for ETH. A dip below this mark might push ETH towards $3,610. Falling through that level could nullify the bullish outlook, triggering a descent towards $3,300.

In conclusion, Ethereum is in a pivotal position. Breaking above $3,835 with positive sentiments and increased buying activity could push ETH to a higher price. Otherwise, a breach below $3,800 amidst negative news could precipitate a significant dip.

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ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.