ETH Price Outlook: Bulls Struggle at $4K Resistance Despite Longer-Term Bullish Bias
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Ethereum: Here’s why ETH bulls are struggling at $4K resistance
While Ethereum has a higher timeframe bullish bias, the inability to maintain prices above $4k was a concern. In the past two weeks, ETH has tested the $4.1k resistance level twice and been rebuffed both times.
Indicators showed Ethereum maintained its longer-term uptrend. However, the struggle to break through this critical resistance level may continue for more days. This is because of a significant volume of purchases at the $3,868-$3,982 zone that could be sold if prices bounce back upwards.
Recent data from IntoTheBlock reveals the high volume of purchases in this range means a move beyond it could be challenging. Buyers within this price range were previously out of the money due to the recent dip and might sell their holdings to cut losses or lock in profits, potentially opposing further gains.
On the other hand, Santiment data outlined a shift in sentiment in recent days, with the weighted sentiment flipping bearishly, indicating bearish online engagement. The 30-day MVRV also showed short-term holders were profitable, suggesting some profit-taking and sell pressure is expected, which could delay attempts at recovery.
Meanwhile, the mean coin age, which had been in a strong downtrend since mid-October, has begun to recover. Ethereum bulls would want to see this accumulation continue over the coming weeks.
It’s also worth noting that Ethereum has ranged between $3.6k and $4k for most of December, with the mid-range level at $3.8k acting as support and the cryptocurrency trading above it at press time.
In a daily timeframe analysis using DMI, we see a strong uptrend still in progress, as both +DI (green) and ADX (yellow) remain above 20. Additionally, the OBV has continued to climb higher since October, reinforcing the idea of steady demand and sustainable gains.
It remains to be seen how Ethereum will continue its price action beyond this point.
Source: eng.ambcrypto.com
