- Ethereum (ETH) price failed to surpass the $4,000 resistance level after the spot ETH ETF approval.
- The market remains sluggish, with concerns about the sustainability of the current rally.
- Technical indicators, such as the on-balance volume and MACD, suggest a bearish shift in the trend.
In the aftermath of the spot Ethereum ETF approval, the cryptocurrency market witnessed a resurgence of bullish sentiment, seemingly vanquishing the bears. However, the upward momentum failed to propel the Ethereum (ETH) price beyond the critical $4,000 threshold, as the resistance level remained firmly in place.
Consequently, the price suffered a 6% decline, accompanied by a significant reduction in trading volume, which now sits below average levels. This raises the question: Can the ETH price reignite its bullish trend and eventually reach $4,500?
As the monthly close approaches, the markets continue to exhibit lethargic behavior, with both bulls and bears displaying minimal activity and lacking any significant price action.
Can Ethereum push past $4,000?
Presently, the ETH price is trading above the support zone, which ranges from $3,657 to $3,706, characterized by a decrease in both volume and volatility. The prevailing trend has temporarily shifted in favor of the bears, and technical indicators are also signaling a “sell” recommendation.
The on-balance volume, which had previously surged, now appears to be gearing up for a bearish divergence. This development implies that negative pressure is gradually accumulating, potentially foreshadowing a bearish turn in the rally and lower prices on the horizon.
As the Ethereum price grapples with the aftermath of the spot ETH ETF approval, the market’s ability to maintain its bullish momentum remains uncertain. The failure to surpass the $4,000 resistance level and the subsequent 6% decline, coupled with diminished trading volume, have cast doubts on the sustainability of the current rally.
The sluggish market behavior and the lack of significant price action from both bulls and bears have raised concerns about the potential for the rally to encounter resistance at local support levels. However, the long-term price action still points toward a bullish continuation, albeit with the necessity of a pullback to attract fresh liquidity.
