ETH retakes key resistance at $3.5k, can it go for $4k next?

Ethereum has recently seen an increase in buying activity, finding robust support at the critical $3.5K level, sparking a bullish bounce.

Despite this recovery, the $4K resistance remains a major barrier that ETH buyers are looking to overcome in the medium term.

Technical Analysis

By Shayan

The daily chart

Ethereum price action has been characterized by a notable rally after finding support at the decisive $3.5 thousand level. This region served as a key accumulation zone, encouraging increased buying pressure and a subsequent surge to the upside. As the price moves higher, the $4K resistance emerges as a critical psychological and technical barrier, requiring a decisive break to establish a sustained upward trajectory.

Ethereum is currently consolidating within the $3.5K-$4K range, indicating a potential breakout in either direction. A successful breach of the $4,000 threshold could set the stage for a further rally and affirm bullish sentiment. Conversely, a rejection at this level may lead to further consolidation or retracement within the existing range.

The 4 hour chart

In the lower time frame, Ethereum’s decline found solid support within the key Fibonacci retracement levels of 0.5 ($3.2K) to 0.618 ($3K). This support zone attracted substantial buying interest, stopped the downtrend and led to a bullish recovery.

The subsequent build-up phase has turned into a bullish peak, with Ethereum now eyeing the critical $4K resistance. This level, coinciding with a previous major swing, is expected to be an area of ​​strong trading pressure.

Ethereum price action at the $4K level will determine its future trajectory. A successful break above this resistance could lead to a solid rally, while a failure could lead to an extended consolidation or a possible retest of lower support levels near $3.5k.

Onchain analysis

By Shayan

The Taker Buy Sell Ratio, a key metric for gauging sentiment in the futures market, provides insight into whether buyers or sellers are more aggressive in executing market orders. Following Ethereum’s bullish rally near the $3,000 support, this metric has shown a notable increase, indicating an increase in market buy orders in the futures market.

This trend suggests that futures market participants are increasingly bullish on Ethereum’s near-term price path, expecting the asset to push towards the $4K resistance.

Buyers’ buy/sell ratio greater than 1 means that buyers are overwhelmingly dominant, often aligning with the start of an uptrend. Today’s data underscores this shift in sentiment, reflecting greater confidence among traders and the expectation of continued upward momentum.

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