Ethereum (ETH) is currently showing signs of recovery after a recent sell-off phase. This has led to a notable rebound, suggesting the potential for a continued uptrend.
Over the past two months, Ethereum has outperformed Bitcoin (BTC), with analysts predicting a significant price increase in the coming days due to the anticipated launch of an Ethereum ETF.
This event is expected to strengthen ETH against BTC, particularly given the bearish divergence on the BTC weekly chart.
Despite the optimism, there is no clear timeline for the launch of the much-anticipated spot Ethereum ETF, causing confusion among issuers about the delay.
Nevertheless, major market participants and Ethereum whales have been accumulating ETH in preparation for ETF approval, anticipating a substantial price increase once the approval is granted.
In a TradingView post on July 13, analyst RLinda pointed out that the daily chart of ETHUSDT shows that bulls are actively maintaining the price above a crucial support line.
Technical analysis and market outlook
According to the analysis, the area above the 200-day moving average (MA) indicates consolidation, which is a positive sign for a bullish structure.
The current resistance level is around $3,200, and a breakout could lead to significant upward movement, potentially targeting the $4,000 to $4,800 range.
On a shorter, four-hour timeframe, the price movement is characterized by consolidation. A large player appears to be actively purchasing ETH, anticipating important news and reinforcing the intermediate bottom zone.
This period of consolidation, supported by increased volume, indicates strong buying interest and a likely continuation of the uptrend. The key support levels here are around $3,056 to $3,152, which have consistently held firm.
The weekly chart supports this bullish outlook, showing a pattern of higher lows indicative of a long-term bullish trend. The key support level at approximately $2,852 has proven resilient, with buyers preventing further declines.
A breakout above current resistance levels on the weekly chart could lead to a significant rally, targeting the $4,000 to $4,800 range.
Timeline for reaching $4000
Given the current market conditions and the anticipated approval of ETH-ETFs, Ethereum could reach the $4000 mark within the next 4 to 6 weeks.
This projection is based on the expected approval of ETH-ETFs within the next 1-2 weeks, technical indicators suggesting a strong uptrend, and positive market sentiment with strong buying interest.
As of the latest update, Ethereum is trading at $3,201.78, reflecting a 2% increase on the daily chart.
This upward momentum is bolstered by both fundamental and technical indicators pointing towards a bullish future.
In the short term, maintaining consolidation above MA-200 and breaking through key resistance levels are crucial.
In the longer term, sustaining the support levels and continuing the bullish trend could see Ethereum reaching new highs.
The alignment of both fundamental and technical factors suggests that Ethereum could reach the $4000 mark soon, particularly if the anticipated ETF approval materializes.