Ethereum price draws closer to the ultimate launch aiming for $4,000

Ethereum dipped twice under $2,000 in May amid the bears’ showdown. The declines extended from an all-time high of $4,400 while bulls failed to secure higher support, culminating in the downswing to $1,750.

In the wake of the bearish price action, Ethereum lifted above $2,000 and closed the gap toward $3,000. However, seller congestion at $2,900 coupled with a generally down-trending crypto market forced ETH to revisit levels slightly above $2,100 toward the end of last week.

Trading in the new week has already yielded considerably for Ether, allowing bulls to pull the price north. The hurdle at $2,700 has been tested but not broken. Also contributing to the seller congestion is the 100 Simple Moving Average (SMA) on the four-hour chart.

Ethereum bullish technical pattern breakout lingers

Despite the frequent rejections, disallowing the liftoff to levels above $3,000, ETH appears to be forming a higher low pattern. The relatively equal peaks have created a highly bullish ascending triangle on the upside.

A breakout is anticipated as soon as the price cracks the x-axis resistance. Note that triangles tend to have precise targets measured from the highest to lowest points. For instance, Ethereum might swing 36% higher from the hurdle at $2,900 and touch highs of $4,000.

ETH/USD four-hour chart

At the time of writing, Ether trades at $2,640 and is held between the 100 SMA and the 50 SMA. The immediate support at the 50 SMA must maintain to ensure that bulls focus on gains above $2,700. Moreover, a break above $2,900 (x-axis) is required to form the foundation of the uptrend to $4,000.

Ethereum intraday levels

Spot rate: $2,640

Trend: Short-term bullish biased

Volatility: Low

Support: the 50 SMA, $2,300 and $2,000

Resistance: The 100 SMA and $2,900

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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige