For a long time, Ethereum has been struggling to break between the $3,525 and $3,530 resistance levels. In recent days, the altcoin did reach $3,525 and began retracing. The price also fell below the support level of $3,450, $3,420, and $3,400 before dropping below $3,300.
At press time ETH price is changing hands at $3,335 with a plunge of 5.31% over the last 24hrs. The immediate resistance lies at $3,400 and then $3,420 and if the price manages to surpass $3,420, then we could see ETH rallying towards $3,500 and also $4,000.
3 Reasons That Could Push Ethereum Towards $4k
There are three possible reasons that could help Ethereum’s price to reach the $4,000 level.
Search For “Ethereum Merge” Swirl On Google
The upcoming Ethereum 2.0 merge is one that has been one of the most awaited merges in the crypto space. Hence, this led to netizens searching “Ethereum merge” on google and the Google Trend score for the term has reached 100 in a 12-month timeframe where the most traffic was attracted from the US, Singapore, and Australia.
This increased public interest in Ethereum merge or also known as ETH 2.0 brings crypto investors and traders’ keen interest to the spotlight. Last month’s Kiln testnet was the final public testnet before the whole Ethereum network transforms from proof of work to proof of stake.
Reduced Ethereum Reserves On The Exchanges
Meanwhile, Ethereum supply has seen downtrending on crypto exchanges. Since August 2018, the net ETH reserves on all the exchanges have dropped to their lowest which points towards Ethereum withdrawal by traders in order to hold them long-term
Technical Pattern Suggests $4k For ETH
The technical pattern is known as the “symmetrical triangle” usually settles after the price breaks in the direction of its previous trend hence it is considered a continuation pattern. However, asymmetrical triangle breakout does not always result in a continuation trend.
For instance, the present breakout of Ethereum seems like a reversal as it bounces towards the upside instead of continuing its previous trend of downside
Hence, this brings Ethereum on a bullish cycle targeting nearly $4,000.