Will Ethereum [ETH] be able to sustain its current rally above $4.1K?

Ethereum [ETH] has set a new record high after sustaining the impressive rally that it pulled off in the last week of April. The second-largest digital asset has smashed past $4,000. The latest development comes a week after it surpassed the psychological barrier of $3,000.

Ethereum has accrued weekly gains of nearly 40%s. At the same time, its dominance rose to 19%, a level that was last seen in July 2018. The digital asset has exceeded the market cap of traditional giants Wal-Mart and Johnson and Johnson with the recent price action.

It is changing hands at $4,120 as of press time after an increase of more than 5% over the past 24-hours. Ethereum’s market capitalization now sits at over $477.3 billion. In addition, the crypto-asset recorded a 24-hour trading volume of $53.45 billion.

Ethereum [ETH] Daily Price Chart:

ETH’s meteoric rise above the $4k-level was accompanied by a period of high volatility in the market. This trend was evidenced by the diverging Bollinger Bands. This could further push the price of the crypto asset in the coming days.

The volume has significantly backed Ethereum’s uptrend. However, it is important to note that it has paled in comparison to that of the first half of January 2021 even as the price increased by more than 170% since then. It will be interesting to see if this volume is enough to extend the latest rally.

The dotted markers of Parabolic SAR firmly supported the crypto-asset’s price from a downfall.

Meanwhile, Chaikin Money Flow [CMF] has been on the rise which depicted that an inflow of capital in the coin market and hence a bullish phase for ETH.

The RSI also moved above the overbought region which was indicative of an increasing buying sentiment among the investors in the Ether market.

The above chart projected a strong positive momentum in the Ethereum market. The token’s support levels were found to be at $3,48, $3,232, and $2,195 respectively.

Chayanika Deka: Chayanika is a full-time journalist at TronWeekly with over two years of experience. A graduate in Political Science and Journalism, she focuses on the political and financial impact of cryptocurrency and blockchain developments.