For a long time, Ethereum has been struggling to break out between the $3,525 and $3,530 resistance levels. In the past few days, the altcoin reached $3,525 and started to pull back. The price also dipped below the $3,450, $3,420, and $3,400 support level before dipping below $3,300.

At press time, ETH price is changing hands at $3335 down 5.31% in the last 24 hours. Immediate resistance lies at $3400 and then $3420 and if the price manages to break above $3420 then we could see ETH rallying to $3500 and also $4000.

3 reasons that could push Ethereum towards $4k

There are three possible reasons that could help Ethereum price to reach the $4,000 level.

Search for the “Ethereum Merge” swirl on Google

The upcoming Ethereum 2.0 merger is one of the most anticipated mergers in the crypto space. Therefore, this led netizens to search for “Ethereum merge” on Google and the Google Trend score for the term reached 100 in a 12-month period where most of the traffic was attracted from the US, Singapore and Australia.

This increased public interest in the merger of Ethereum or also known as ETH 2.0 highlights the great interest of cryptocurrency investors and traders. Last month’s Kiln testnet was the last public testnet before the entire Ethereum network transforms from proof-of-work to proof-of-stake.

Also Read: Ethereum (ETH) Price May Rise in April 2022, but May Still Have a Bearish Monthly Close!

Reduced reserves of Ethereum on exchanges

Meanwhile, the supply of Ethereum has seen a downward trend on crypto exchanges. Since August 2018, ETH net holdings across exchanges have fallen to their lowest level ever, pointing towards Ethereum being withdrawn by traders to hold them for the long term.

Technical pattern suggests $4k for ETH

The technical pattern is known as the “symmetrical triangle” and is usually established after price breaks in the direction of its previous trend, so it is considered a continuation pattern. However, the breakout of the asymmetrical triangle does not always result in a continuation trend.

For example, Ethereum’s current breakout looks like a reversal as it bounces back up instead of continuing its previous downtrend.

Therefore, this leads Ethereum into a bullish cycle with a target of almost $4,000.

Was this writing helpful?





This post Ethereum HODLers Can Expect Huge April Profits, ETH Price Hits $4k Is Imminent

was published first on https://coinpedia.org/ethereum/ethereum-eth-price-hitting-4k-is-imminent-in-april/

Author

Write A Comment