The Ethereum price seeks 4,000 dollars after recording an increase of nearly 7% over the past 24 hours globally. According to Ananda Banerjee’s analysis, the asset has successfully broken out of a “cup-and-handle” pattern on the 12-hour chart. This technical structure usually signals the continuation of a bullish trend when confirmed with significant trading volume. In this way, the leading smart contract cryptocurrency regains a momentum not seen in weeks.
The breakout occurred on January 13, when the price cleared the pattern’s neckline with expanding green candles throughout the day. Likewise, buying volume supports the move, reducing the chances of a false breakout in the short term. The measured technical target from the base of the formation points directly toward the 4,010 dollars zone. The strength of buyers drives the price toward very important psychological resistance levels today. Therefore, the structural path seems clear for further gains if the support holds.
On the other hand, despite the constructive structure, warning signs have emerged in momentum indicators recently. The Relative Strength Index (RSI) shows a potential bearish divergence, which could suggest temporary exhaustion of the upward movement. Therefore, it is vital that Ethereum maintains its position above ,360 dollars to nullify this technical risk. Bullish momentum faces a critical resistance at current trading price levels in the market. Many traders are closely watching if the RSI manages to confirm the new highs.
On-chain data reveals high conviction among short-term holders during this rally
On-chain indicators add an additional layer of analysis regarding the behavior of current investors in the network. The NUPL (Net Unrealized Profit/Loss) for short-term holders has reached its highest point in two months. This means more investors are in profit, which historically increases the temptation to sell and trigger pullbacks. However, spent coins activity remains quite muted despite the increase in unrealized profits so far. Investors are holding their assets firmly while waiting for higher valuations very soon.
Furthermore, the movement of coins in the 30 to 60-day range has dropped nearly 80% from its recent peak. This suggests that even though the Ethereum price seeks 4,000 dollars, holders are in no rush to distribute their positions. Therefore, there is a solid conviction supporting the current price structure against potential massive sell-offs. Investor patience is absolutely key to sustaining the rally in the global market. This lack of selling pressure makes it easier for the price to continue its gradual ascent.
Will the price manage to overcome technical divergence to consolidate its path to success?
For the bullish scenario to continue, it is essential that the asset maintains support between 3,250 and 3,270 dollars. A convincing close above the 3,380 dollars zone would strengthen the continuation thesis toward 3,580 dollars. Thus, analysts’ eyes are on the market’s ability to absorb the current liquidity. Maintaining key support levels is essential to avoid a deep correction of the price. If the volume remains constant, the 4,000 dollars target will become structural rather than aspirational.
Nevertheless, if momentum falters and the 3,250 dollars level is lost, the short-term structure could weaken. In that case, the 3,180 and 3,050 dollars levels would become zones of interest for potential technical rebounds. Volatility could increase in coming sessions due to profit-taking by some short-term traders. However, the overall outlook remains optimistic as long as buying volume outweighs selling volume. The crypto market awaits clear definition regarding the altcoin trend during this financial quarter.
