Ethereum Approaches Critical Resistance at $4,700 According to Analyst
Ethereum Faces $4,700 Resistance
Ethereum is currently testing a significant resistance level at $4,700, as noted by analyst Kevin. This price point is described as critical for future price direction.
- The $4,700 area is characterized as a supply zone, influenced by the previous cycle's peak and a down-trending weekly RSI line.
- A decisive breakout above this level, confirmed by a clean weekly close, could signal the start of a bull market for Ethereum.
- If Ethereum fails to break this resistance, it may continue a pattern of weakening rallies.
Recent trends showed money flow improving, but Ethereum stalled at resistance, with macroeconomic factors contributing to market volatility.
- The US Producer Price Index (PPI) reported higher-than-expected figures, impacting market dynamics: month-over-month +0.9% vs. +0.2% expected, year-over-year 3.3% vs. 2.5%.
- This inflation data raises concerns about its potential impact on the Consumer Price Index (CPI) and subsequent Fed interest rate decisions.
- Rate-cut probabilities fluctuated significantly, reflecting market uncertainty ahead of upcoming economic events.
Kevin emphasizes that the key for Ethereum lies in:
- Breaking the horizontal supply around $4,700.
- Overcoming the weekly downtrend on the RSI to eliminate ongoing bearish divergence.
Failure to achieve these goals may lead to further declines in ETH prices. Conversely, success could open pathways for gains in Ethereum and the broader altcoin market.
As of now, Ethereum trades at $4,619.
