- Ethereum is testing the critical $4,000 resistance level, aiming to rally toward $5,000.
- Analysts consider Ethereum still undervalued, referencing Tom Lee’s estimated value between $12,000 and $22,000.
- Ether’s major support remains at $3,550, with price movements influenced by Bitcoin’s overall market trend.
Ethereum (ETH) is showing signs of strength as it tests key resistance levels. Analysts believe that it is still undervalued and that it could see large gains. A breakout could lead to a strong upward trend in the market.
At the time of writing, Ethereum is trading at $3,926.5 and is showing a slight decrease of 1.19% over the last 24 hours. Currently, ETH has a market capitalization of $473.75 billion with a 24-hour trading volume of $34.58 billion. This goes to show that despite the small decrease, trading activity remains high.
Ethereum Undervalued Despite Tom Lee Prediction
Popular crypto analyst Merlijn The Trader shared an interesting view, talking about Tom Lee’s estimate of Ether’s actual value being between $12,000 and $22,000. Merlijn stated that while Lee may be right to some extent, Ethereum’s current price is still a bargain.
Ethereum Approaches Key Resistance, Eyes Next Rally
Meanwhile, another well-known analyst, CRYPROWZRD, pointed out that while the ETH daily candle closed in the positive, the market requires more positive daily closes to establish a strong positive trend at or above the level of $4,000. His plan remains to spot opportunities at lower levels of analysis for a quick entry and exit point after securing current trading positions.
Technical analysis charts indicate that the ETH/USD and ETH/BTC pairs closed with positive indicators; however, the candles continue to display indecisiveness. Prior to Ether acquiring strong buying traction, it is paramount that the ETH/BTC pair breaches the lower high trend-line on a daily chart to spark a strong bullish shift.
At the moment, Ethereum has been ranging and testing the $4,000 level of resistance. This level of importance can help decide future trends for ETH. Breaking further above it can help Ethereum reach the next target of $5,000. On the other hand, the biggest level of support at the moment remains at $3,550.
Also Read | Ethereum Whale Buys $46 Million Targets Strong Breakout Toward $6,000 Soon
Ethereum Poised for Price Movement
In the daily chart analysis, market trends have remained volatile; however, projections indicate a positive force upward in the future days. The next level of resistance is at $4,140, while the level of support is at $3,890.
Experts further noted that Ether’s future moves may also be affected by the price movements of Bitcoin since the two often move according to a similar sentiment trend.
At the current state of affairs, the community appears to be patiently waiting for Ether’s next strong move to ascertain that it’s ready for another round of upward movements.
Also Read | Ethereum (ETH) Bulls Push for $4,300 Breakout as $3,800 Support Holds Strong
