Daan Crypto Trades: Ethereum has the potential to rise to $ 4000

The price of Ethereum is currently consolidating in the range between $ 2,400 and $ 2,680, and the market is expecting a strong breakout in the near future. After a recent surge to $ 2,879, a three-month high, the cryptocurrency has dropped again, but remains in a certain range that has been maintained since the start of the May market recovery.

An analyst at Daan Crypto Trades points out that the $ 2,800 level is a key one for the market: each breakout of this level in the past has led to either a significant increase or a sharp drop. He emphasizes that the ETH price is «squeezing» below this barrier, and this dynamic usually precedes a strong move.

In the event of a successful breakout and consolidation above $ 2,800, Ethereum has the potential to rise to $ 4,000, the level of the previous cycle highs. However, if the price loses its current support, the $ 2,100 area will be an important level to watch.

Another trader, Merlijn, draws parallels with Ethereum’s behavior in 2016−2017. Back then, a similar consolidation after a breakout from a downward wedge became a prerequisite for large-scale growth. According to him, this time the situation is even more interesting due to the larger market and institutional support.

As of the time of publication, Ethereum is trading at $ 2,576.