After a modest drop, Ethereum (ETH) hangs on to much of its recent gains along with the entire cryptocurrency market on Thursday. Fears of extended high inflation provided a tailwind for Ethereum and will continue to do so in the future, ensuring that ETH’s long-term outlook stays bullish. The recent upswing in price met a wall as Ether pullback after nudging new ATH past $4,800. ETH bulls’ attempt to run past the $5,000 psychological mark was rejected. However, buying remained weak against the upside resistance wall around $4,867 ATHs. ETH retains the second-largest coin by market cap, falling by 8% to $4,460 over 24 hours. Following that minor drop, ETH/USD has recovered and yet trading near $4,700 as of writing. As Ethereum hits a new all-time high, it has already broken the $100 billion total value locked (TVL) in the DeFi ecosystem. The total value locked, which is a measure of assets pledged to DeFi platforms shows that it is at an all-time high of $112 billion. The rise of the DeFi sector is directly proportional to a rise in the price of Ethereum.
Key Levels
Resistance Levels: $5,200, $5,000, $4,800
Support Levels: $$4,400, $4,200, $4,000
ETH/USD Daily ChartAmid decreased strong momentum, the ETH/USD fell from its all-time highs of $4,867. However, ETH trades above its moving averages (MAs 50 and 200), the overall bullish picture remains intact. ETH’s positive momentum may increase if the price breaks above its all-time high of $4,867. On the other hand, if the price falls below the $4,400 support level, the bears may target the powerful $4,000 barrier.
The near-term momentum indicators support the weaker positive momentum and price depreciation. The Relative Strength Index has declined slightly over the past sessions, albeit it is still above its 50 neutral mark, and the price trades above the ascending trendline. In sum, the ETH/USD overall forecast is bullish, with a weaker positive momentum.
ETH/USD 4-Hour ChartAbove the $4,400 mark, the retracement from the $4,867 level found support. The $4,500/$4,400 zone, in particular, supported the no. 2 crypto price. The ETH/USD had returned beyond the $4,700 mark by the middle of Thursday’s GMT trading hours. If the price breaks over the $4,800 level of resistance, the $5,000 mark could be the next goal for Ethereum’s rally. Otherwise, it may halt continuation due to overbought conditions.
A bounce off the $4,800, on the other hand, could lead to a return to the $4,500/$4,400 area. The 4-hour moving average (MA 50) near $4,600 provided extra support. Bulls continue to eye key barriers at $4,867 (weekly cloud top), a breach of which would reveal the psychological $5,000 level. Bullish daily chart analyses support the movement, dip-buying recommended above the prior top at $4,374.
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