August proved a really good month for all cryptocurrencies, including Ethereum, and now indicators predict that it is on the way to reach a price of 4,000 dollars. In the last 48 hours, Ethereum rose further 10% to cross the $3,500 level, and if it becomes able to hold this level, then its possibility of reaching 4k will become more likely. Previously, it faced a resistance barrier for the last two months, but now technicals and fundamentals suggest that Ethereum is back on track of the bullish trend.
The consolidation period of Ethereum started on 6th August, but for a long time, it was not able to cross the crucial resistance point of $3,350 until yesterday. It has resulted in the formation of a rising triangle on every four-hour performance chart of Ethereum. It became possible with a sudden rise in demand which created an uptrend, ultimately resulting in slicing through the overhead hurdle.
After this recent price hike, now it is estimated that another 12% rise in the price of Ethereum is on the cards. IOMAP (In/out of the money around price) model adds credence to the upward appearance of the second-largest digital coin in terms of market cap. According to this on-chain metric, Ethereum is on top of a supply barrier which has allowed it to continue its upward movement.
Nearly 1.3 million people purchased almost 12 million Ethereum coins when it was in the price bracket of 3,120 to 3,230 dollars. This critical area has the capability to soak all the downward pressure on prices. It is a possibility that holders within this range bought more coins to thrust the price to a higher level in order to gain profits.
Now, for the time being, there are no visible resistance barriers in front of Ethereum; hence it is being expected that the bullish movement will continue. The possibility of elevated profit-taking at this price is dwarfish until the $3200 demand barrier is present. Only some macro events with the capability to encourage traders to sell their present stocks can invalidate the optimistic standpoint and lead to a correction price.
This optimistic appearance of a digital coin is figured by calibrating the distance between the highest corners of the triangle and adding it to the breaking point.
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