The price of Ethereum is currently undergoing an important consolidation phase, with analysts eagerly anticipating the next significant movement. After reclaiming the $4,500 mark, the cryptocurrency is faced with one final challenge before it can potentially venture into new territory. Crypto analyst Ted Pillows has identified a price target of $5,000 for Ethereum, indicating a possible new all-time high.
Ethereum Price Confronts Significant Barrier Before $5,000
In a recent technical analysis shared on X social media, Pillows elaborated that Ethereum has effectively regained the $4,500 support level, which was previously a hurdle for bulls. Currently, the market is intently focused on the next price barrier at $4,880, identified as the last hurdle before a potential breakout.
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According to his price analysis, closing above the $4,880 resistance on a daily candle could pave the way for a fresh all-time high and rapidly enhance Ethereum’s momentum towards the $5,000 goal. Just last month, ETH surprised the market by exceeding its 2021 all-time high and surpassing $4,900. Presently, the cryptocurrency seems poised for its next major move, with Pillows affirming $5,000 as the immediate target.
Ethereum’s challenges near the $4,880 level arise from multiple failures to advance higher at this level in recent sessions. Each setback has solidified $4,880 as a robust resistance, marking it as a critical point for bulls to overcome. A decisive move above could negate bearish short-term pressure and possibly stimulate an increase in buying volume.
Conversely, if Ethereum fails to maintain its position above this level again, the price may drop to lower support levels. Pillows has highlighted the $4,200 – $4,400 range as the main demand zone where buyers could re-enter. This zone has historically provided solid support and may serve as a launchpad for another attempt to retest the resistance.
ETH Rejected At $4,650 But Retains Support
In a subsequent analysis, Pillows pointed out that Ethereum was unable to reclaim the $4,650 level, complicating its quest to reach the $4,880 resistance. The failure to surpass $4,650 has sparked concerns of a short-term pullback, with the $4,500 area now serving as the crucial support to monitor.
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Should ETH maintain a position above $4,500 and garner renewed bullish momentum, Pillows posits that an additional attempt to reclaim $4,650 might occur, potentially setting the stage for the anticipated $4,880 breakout. On the downside, Ethereum holds substantial structural support between $3,800 and $4,000. This range has historically functioned as a vital demand zone during previous corrections, absorbing selling pressure and allowing bulls to re-accumulate.
For longer-term investors, Pillows emphasized that this support zone presents a noteworthy buy-dip opportunity. He noted that if ETH falls to this level, many altcoins would likely also enter attractive discount zones, offering broader accumulation opportunities throughout the market.
Featured image from Adobe Stock, chart from Tradingview.com
