Ethereum is preparing to break through $ 4000

Cryptocurrency experts note: Ethereum ETH $2,487.26 Bridged Ether (StarkGate) -6.27% Market capitalization $0.19 billion VOL. 24 hours $1.24 billion is currently experiencing a prolonged decline. The price of the asset has dropped below $ 3000 at the moment. Nevertheless, analysts believe that there is still potential for the main altcoin to recover due to the growing confidence of investors.

Investors in Ethereum remain optimistic despite the current challenges. A sign of this is the slowdown in sales in recent weeks. In particular, there has been a decline in active deposits, which indicates a decrease in the number of coins coming into exchange wallets, which usually indicates a potential sale.

According to the analysis of the profitability of active addresses, the number of investors who are in the black has decreased, which is a bearish signal that ETH holders could be selling their assets. At the same time, the number of investors who have suffered losses has increased by 15% over the past two months, which may indicate a slowdown in sales and an increase in cryptocurrency holdings.

The Ethereum price is currently in a downward wedge and is approaching a breakout. This breakout can happen with the support of investors. A descending wedge is a bullish reversal pattern that hints at a potential rally after a breakout above the upper trend line. In the case of ETH, such a breakout could lead to a 28% rally, pushing the price of the altcoin to $ 4000.

However, a more realistic view may indicate that the price will regain the $ 3000 mark with a resistance level of $ 3500. However, if the decline continues, Ethereum’s price could fall below the lower trend line at $ 2800, which could extend losses, potentially pushing ETH down to $ 2600.