ETH has gained 7.5% in the past week, showing momentum towards the $4,000 mark. A golden cross, bullish technical indicators and an RSI (Relative Strength Index) currently at 63.6 suggest that ETH has the potential to continue to rise. However, the market remains at a critical juncture, and support and resistance levels will determine its direction.
Whale activity, a key factor in Ethereum market dynamics, has rebounded after a brief drop in early January. The number of wallets holding at least 1,000 ETH has climbed to 5,615, indicating renewed confidence among large investors. Analysts believe that this accumulation could further drive prices higher if the trend continues.
In addition, the RSI recently retreated from overbought levels, reflecting neutral to bullish sentiment. While a rise to 70 could reignite the upward momentum, a drop below 50 could indicate a weakening of momentum.
The golden cross formed by ETH earlier this month supports the bullish outlook, with resistance at $3,827 the next key target. A break above this level could pave the way for $4,000, but holding the $3,543 support level will be crucial to avoid a fall.