Can Ethereum’s 20% Surge Push ETH Price to $4,000?

The price of ETH experienced a notable surge of 7.38% last night, outperforming Bitcoin and forming a bullish engulfing candle that propelled it above the $3,400 mark. Meanwhile, the SEC has chosen to remain silent on the recent submission of S-1, with the final versions expected to be filed on Wednesday.

Amidst this recovery rally, Ethereum’s trend has begun to reverse. This prompts the question of whether the Ethereum price prediction, which hints at Ether reaching $10,000, will come to fruition.

Ethereum’s market cap has exceeded $400 billion, marking a significant milestone. The ETH price has initiated a rounding bottom reversal, reclaiming the $3,000 milestone. The rally, starting from $2,880, has been characterized by a series of bullish candles.

The reversal rally has breached the broken support trendline and is now aiming for the $3,500 level. Notably, the neckline for the rounding bottom pattern lies at $3,500, representing a crucial supply level for Ethereum.

Following the substantial 7.38% surge, the ETH price experienced a slight 1.10% decline today, currently trading at $3,447. This minor dip can be attributed to bullish exhaustion, indicating the potential for the rally to resume later in the day.

In terms of technical indicators, the RSI line has surged above the halfway mark due to increased demand during the recovery rally, nearing the overbought zone. Additionally, the bullish crossover between the MACD and signal lines on the daily chart is reinforcing the uptrend.

Looking ahead, as the Ethereum ETF listing draws nearer, market sentiment is leaning towards a bullish outlook for ETH prices. This positive sentiment suggests that the ETH price is likely to surpass the $3,500 threshold.

Upon breaking the $3,500 barrier, the trend-based Fibonacci levels point to potential target levels at $4,141 and $5,402. These projections align with the current bullish momentum observed in the Ethereum market.