Ethereum ($ETH), the flagship altcoin, is nearing a crucial price level amid the growing altcoin market rally. As per the exclusive market data, Ethereum ($ETH) is approaching the psychological $4,000 spot as the demand for exchange-traded funds (ETFs) has reached a significant height. This price performance indicates a likely bullish breakout in the near term. Hence, after struggling for a considerable time, the top altcoin is set to show a historical bull rally again.
Ethereum Approaches $4,000 while Price Movement Stands Strong Despite Minor Pullback
Ethereum’s ($ETH) price recently surpassed the $3,940 mark and attempted to continue its price movement above that zone. However, after a slight dip, it is now witnessing consolidation while showing massive potential for a surge above $4,000. At present, it is reportedly trading above $3,800.
In addition to this decline, $ETH witnesses a crucial support level around $3,720. In this respect, it firmly stands above the 100-hourly Simple Moving Average (SMA). This denotes the formation of a notable bearish trend line at $3840. It now provides immediate resistance in the case of upward movement.
Growing Whale Activity and Accumulation Fortify the Possibility of Bullish Breakout
At the same time, the whale activity has also raised interest in the top altcoin. Hence, the continuous accumulation and large-scale transactions on-chain are also supporting this development. Additionally, such whale movements often take place before key price shifts, adding to the possibility of a potentially imminent breakout above the $4,000.
As market onlookers believe, despite the favorable market conditions and positive indicators, Ethereum ($ETH) might also witness a pullback below the $3,800 mark. Such a development could reportedly lead to considerable market volatility. Keeping this in view, irrespective of the increasing ETF demand and institutional inclusion, the traders are advised to stay cautious concerning a probable increase in volatility.
