Ethereum brushes against $4k! Will the market optimism continue?

• Ethereum momentarily hit $4,000, backed by ETF enthusiasm.
• Technical indicators suggest a retest of $4,000, breaking it sustainably soon.

Ethereum [ETH] has managed to sustain its ETF-infused rally. An hour ago, it even temporarily hit the $4,000 level before bouncing back to $3,947 at press time.

ETH bulls are clearly leading the pack here, but when can we expect the token to stay comfortably above $4K?

Ethereum’s key levels

This ETH/USDT pair showed a significant upward movement at press time, breaching the $4,000 mark temporarily before settling into a phase of consolidation.

The sharp rise preceding the consolidation showed strong buying pressure, fueled by the bulls.

Source: TradingView

Observing the moving averages (MA50 and MA200), there’s a bullish crossover with the MA50 trending above the MA200, which is typically a favorable sign.

The Relative Strength Index (RSI) is hovering around 63, indicating strong momentum without being overbought, which supports potential further upward movements. 

However, the recent consolidation near the $3,940 mark shows resistance that could cap gains temporarily as Ether cools down.

If Ethereum can maintain support above the MA200 line and leverage the current bullish sentiment, it will attempt another break above $4,000 sustainably later today.

Source: Coinglass

The Ethereum derivatives market is also showing some intense bullish activity, with a notable increase in both trading volume and Open Interest.

This suggested heightened trader engagement in anticipation of a sustained bull run. 

Analyzing the long/short ratios, particularly the figures from top traders on Binance [BNB] and OKX, where long positions outweigh short positions by far, suggests that the market’s leading participants are bullish on Ethereum. 

This would strengthen ETH’s chances of sustaining a price above $4,000 and potentially reaching new heights as market conditions align with investor confidence and external market stimuli.

The Ethereum Fear and Greed Index, currently at 66% indicating “Greed,” further reflects the bullish sentiment in the market.

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The bulls are supported by overwhelmingly positive scores across multiple indicators such as social, volume, and volatility.

All in all, the metrics tell us Ethereum bulls are merely waiting for the market to cool down. A surge above $4,000 would likely come today. Or, at the latest, tomorrow.