The crypto market is gradually flipping bullish after a dismal start on Monday characterized by drastic losses after major altcoins tumbled. ETH, the token powering the most prominent smart contracts ecosystem, dropped to test $3,200 support, contributing to the generally bearish crypto market. Considering the current Ethereum price forecast, as it dodders at $33,379, the path of least resistance is gradually flipping upwards, aiming for highs above $4,000.
Bulls Wake Up In Tandem With The Soaring DeFi TVL
The volatility experienced by Ethereum has not significantly affected the decentralized finance (DeFi) sector within the ecosystem. A minor dip from the yearly high of approximately $58 billion eased to $47 billion, hinting at positive sentiment in the market.
According to data graphically highlighted by Defi Llama, the total value locked (TVL) in the sector has recovered to slightly above $50 billion, underscoring growing interest in the long-term fundamental outlook.
Often investors prefer to participate in securing the network while in the process earning more coins instead of selling at the earliest sign of profit. Should the value of ETH locked in smart contracts continue to surge, it would be prudent to look forward to further price increases this week and this month in general.
Ethereum Price Forecast: Assessing Mid-Week Bullish Comeback
Ethereum price is slowly making its way to the $3,500 barrier, but first, it must confirm the validity of the support provided by the 20-day Exponential Moving Average (EMA) at $3,364.
Backing the ongoing bullish push is a buy signal from the Moving Average Convergence Divergence (MACD) indicator. Buying pressure is bound to surge behind the token as the MACD rises into the positive region. The forming green histograms also validate the bullish thesis.
Conservative traders are likely to wait until Ethereum price tops the yellow band and the descending trendline resistance – marking the second confirmation of the uptrend.
With Bitcoin halving on the immediate horizon, interest in major altcoins could start to increase exponentially. Although the event is pertinent to BTC, the bullish sentiment associated with it tends to prop the entire crypto market to rally, with some tokens hitting new all-time highs.
However, the IOMAP by IntoTheBlock realistically places a realistic resistance at $3,435 where 1.85 million addresses purchased 4.17 million ETH. Before rising above this level, some holders may choose to offload at their respective break-even points, thus creating selling pressure.
On the bright side, breaking above this hurdle could drastically change the technical outlook propping Ethereum for a bigger breakout ahead of the Bitcoin halving.
Declines could intensify if Ethereum price respects the seller congestion at $3,450, and possibly trigger a sell-off back to $3,200 and $3,000. If investors sell around the halving, it would be too early to rule out losses as far as $2,930.
The post Ethereum Price Forecast: Can ETH Still Hit $4,000 Pre-Bitcoin Halving? appeared first on CoinGape.
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