Ethereum (ETH) has surged past the significant $4,000 psychological barrier, indicating strong bullish momentum in the market. The prominent cryptocurrency currently trades near the $4,200 level, a key resistance point.
A breakout above this $4,200 resistance suggests potential for further appreciation. Technical analysis points towards a significant upside target of $5,600 if current momentum continues.
However, market participants are advised to remain cautious. The Relative Strength Index (RSI) indicates ETH is currently in overbought territory, suggesting the possibility of short-term price corrections.
The $4,000 level is now viewed as crucial near-term support. Should this support be decisively breached, a deeper retracement towards the $3,650 region becomes a possibility. Further resistance is expected in the $4,300–$4,350 zone once the $4,200 level is surpassed.