Ethereum Approaches Critical Moment at $4,000 – Here’s the Reason Behind It

Ethereum’s value surged by more than 4.6% within the last 24 hours, hitting a high of $2,634 before experiencing a minor pullback. Following the overall positive momentum in the cryptocurrency market, this leading altcoin has demonstrated impressive growth, achieving a total increase of 61.92% over the past month. Nonetheless, market indicators suggest that Ethereum is approaching a critical threshold at $4,000, a key level that could either hinder or confirm the prevailing upward trend.

ETH Needs to Break Through Established Resistance for Major Gains

In a post on May 16, crypto analyst Ted Pillows emphasized a pivotal price point for Ethereum amid the current bullish phase. Noteworthy is the fact that ETH has surged over 60% recently, moving from $1,400 to trade above $2,600. Given the strengthening chart patterns and market fundamentals, the altcoin is poised to sustain this upward trajectory in the near term.

Pillows asserts that $4,000 represents a vital zone for ETH proponents based on historical pricing trends. Ethereum has been navigating through an expansive symmetrical triangle pattern that initiated in Q3 2020 and has extended for more than 1,500 days. Currently, the $4,000 mark lies just beneath the upper edge of this triangle, acting as a substantial barrier to any further price advancements.

Throughout 2024, Ethereum encountered rejection at the $4,000 mark on three occasions, even amidst broader market rallies, stirring concerns about the long-term viability of the altcoin. Should the ETH bulls manage to sustain current demand levels, another potential challenge at this significant resistance zone appears likely.

For Ethereum to affirm its role in an emerging crypto bull market and potential altseason, it must surpass the $4,000 threshold, converting this area into a solid support level that could bolster the existing market structure with bullish aspirations reaching up to $12,000. Conversely, should ETH encounter resistance once more in this zone, a price correction may ensue, with possible lows around $1,700 in line with the symmetrical triangle’s lower boundary.

Institutional Interest in ETH Grows Stronger

In other developments, the Ethereum market is witnessing notable activities from institutional investors. In a separate update, Ted Pillows revealed that the UK-based investment firm Abraxas Capital currently possesses 257,165 ETH, valued at $655 million, following a consistent accumulation over recent days.

This level of institutional investment signals a robust bullish outlook for the Ethereum market, reflecting a strong demand from traditional financial entities equipped with significant liquidity. At the time of reporting, the leading altcoin was trading at $2,490, marking a 6.95% increase over the past week.