Can Ethereum Surge Beyond $4K Amid the Ongoing Rally?

• Ethereum hit a two-month high of $3,841 yesterday.
• Technical analysis indicates resistance at $3,841, and support at $3,367.

Ethereum, the second-largest cryptocurrency by market capitalization, experienced a significant surge of nearly 30% yesterday, surprising investors. This comes as Ethereum’s price movement has been relatively stagnant since the start of 2024, even as Bitcoin surged past $73,750.07. Yesterday, Ethereum hit a two-month high of $3,841. Currently, ETH is trading at $3,755.31, with a 3% increase, although its trading volume has decreased by 10%.

The recent surge in Ethereum’s price is accompanied by the most bullish crowd sentiment since September, according to Santiment. The optimism is largely driven by expectations that the U.S. Securities and Exchange Commission (SEC) will soon approve the first Ethereum Exchange-Traded Funds (ETFs). This potential approval has contributed to Ethereum’s price surge, while sentiment around Bitcoin and Solana remains slightly bearish.

Adding to the excitement, at least five potential Ethereum ETF issuers have recently submitted their amended 19b-4 forms within the last 25 minutes. The issuers include prominent financial firms such as Fidelity, VanEck, Invesco/Galaxy, Ark/21Shares, and Franklin, all of whom filed through the Chicago Board Options Exchange (CBOE).

ETH Price Chart Source: Trading View

Will Ethereum Surge Past $4K?

Technical analysis indicates that Ethereum faces resistance at $3,841 and $4,823, with support levels at $3,367 and $2,864. The 9-day Exponential Moving Average (EMA) is at $3,377, suggesting a bullish trend. However, the daily Relative Strength Index (RSI) is at 71, indicating an overbought situation.

The ongoing developments around Ethereum and the broader crypto market are expected to keep investors vigilant and active in the coming days.

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