Ethereum Price Forecast: ETH Targets $3.5K Amid Rising ETF Launch Expectations

Ethereum has witnessed a surge in demand around a critical support level, leading to a significant bounce above the 200-day moving average at $3,134 and advancing towards the 100-day MA.

This recent price movement underscores the potential for a bullish reversal if Ethereum manages to climb back above the 100-day MA of $3,342.

Analyzing Ethereum’s daily chart reveals that following an extended bearish phase, the cryptocurrency briefly dipped below the 200-day moving average at $3,081, causing apprehension in the market as this MA serves as a crucial support level.

However, Ethereum found robust support around the $3K mark, triggering a notable bullish recovery. The price has now exceeded the 200-day MA and is heading towards the 100-day MA, indicating a possible bear trap and false breakout.

Presently, ETH has reached the 100-day MA at $3,142 and is on the brink of reclaiming it. This MA coincides with the strategic resistance level of $3.3K, acting as a formidable barrier for buyers. Nevertheless, a sustained position above the 100-day MA could confirm a bullish resurgence in the medium term, with the next target set at the yearly high of $4K.

On the 4-hour chart, Ethereum faced resistance near the multi-month descending trendline at $3.5K, initiating a persistent bearish trend. Upon hitting the critical psychological support zone at $2.8K, the bearish momentum waned, leading to the formation of a prominent double-bottom pattern.

Subsequent to this consolidation phase, increased buying pressure propelled a bullish rebound, breaking above the neckline and executing a successful pullback to the breached level.

Following an impulsive surge, indicating a positive shift in market sentiment, Ethereum now faces a crucial resistance area encompassing the significant $3.4K mark and the multi-month downtrend line, where selling pressure could intensify.

A successful breach of this resistance zone could extend the bullish trend towards $3.7K. Conversely, a rejection at this level might sustain the bearish trend, targeting the pivotal $2.8K support level.

In terms of sentiment analysis, Ethereum has recently undergone a bullish recovery, surging towards the critical $3.5K resistance zone. Identifying potential liquidation areas within Ethereum’s price action is vital for predicting future price movements and guiding mid-term trading strategies.

Liquidity zones are observed around the $4K resistance region, primarily comprising buy-stop orders triggered by aggressive short positions during the preceding bearish trend. A plausible mid-term scenario involves the continuation of the bullish trend to tap into liquidity near and above the $4K resistance level, strategically supporting further upward momentum in Ethereum’s price.