Last Call to Invest in Ethereum before ETH Explodes to $4K – Price Analysis

  • Ethereum shows signals of more upswings after the alt surged 36% over the past two weeks.
  • On-chain data supports a $4,000 revisit after a slight retracement.
  • A daily candle close beneath the 50-day Simple Moving Average at $2,848 will cancel ETH’s bullish thesis.

Ethereum price appears ready to extend upside, but a minor correction seems possible before another massive leg-up. On-chain metric supports the potential near-term correction that will welcome long-term bullishness for Ethereum.

Ethereum Prepares for More Upticks

Ethereum gained near 36% since 14 March, overpowering the 50- and 100-day SMAs near $2,845 and $3,045, respectively. While publishing this content, Ethereum changed hands at $3,409.01 (Coinmarketcap data).

Maintaining the uptrend will take Ether towards the 200-day Simple Moving Average at $3,489. The alt might encounter rejection here due to inadequate upside strength.

Therefore, a brief fall towards $3,136 appears possible. Surprisingly, the 100-day Simple Moving Average stays ready to absorb incoming selling momentum, making the region a high probable reversal area.

Thus, a rebound from $3,136 might catalyze a rally that pushed ETH to overpower the 200-day Simple Moving Average to challenge the low volume node around $3,703. Overcoming this obstacle is paramount to prevent a local high with Ethereum moving sideways.

Buyers conquering the low volume node might open doors for ETH to hit the $4,040 target. That would mean a 30% ascent, and ETH might pause. Meanwhile, the latest surge in intraday MVRV supports ETH’s minor retracement.

The metric uptick suggests investors’ cluster in profit, revealing the possibilities of a plummet. Moreover, ETH MVRV surging beyond 15% often encounter sell-offs.

Though the near-term picture displays a pullback, Ether’s on-chain volume indicates that surged on-chain volume (to 16.2 billion in 2022 March from 14.5 billion in 2021 November) backed the latest upsurge. The 11.7% uptick shows Ethereum has the momentum to extend its upswing.

Ethereum appears bullish despite a potential slight drop. Maintaining the bullish bias recorded over the previous two weeks will see the leading alt revisiting $4,000. Nevertheless, everything might go sour with a BTC flash crash.

Sliding beneath a 100-day Simple Moving Average of $3,046 will highlight buyers’ weakness, and ETH might drop towards a 50-day Simple Moving Average at $2,849.

Buyers can regroup for another upside attempt, but a decisive close under $2,848 will cancel Ethereum’s bullish thesis. Such developments might see the 2nd-largest crypto losing 10% to $2,584.

By Edward Richardson
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