Ethereum Reclaims $4K, Poised For Explosive Breakout Say Analysts

Ether prices have reclaimed the $4,000 level, adding 3.6% on the day to reach $4,060 during the Monday morning trading session in Asia.

The asset has gained almost 10% since its crash to $3,700 on Oct. 17, but still has a long way to go, trading down 18% from its all-time high.

ETH prices have also held on to key support levels with the weekly closing candle at $3,985, according to Tradingview. This solid support zone stems from December’s highs and weekly closes.

Ether “wicked into its multi-year downtrend that was broken months ago for another retest attempt to then return into the range,” which it is still holding, said analyst ‘Rekt Capital’ on Sunday.

Big Move Ahead For ETH

“There is not a single bearish thing about the ETH chart. It doesn’t really get much cleaner,” said analyst ‘Sykodelic’, highlighting several bullish indicators.

“This has been the biggest and most devastating mental onslaught from market makers, and they have managed to convince everyone that it’s game over when the ETH chart looks like this.”

“Ethereum is forming the most explosive setup since 2017,” said analyst ‘Merlijn the Trader’ who identified a “textbook bullish pennant” on the monthly time frame.

https://twitter.com/MerlijnTrader/status/1979925510697484722?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank

Meanwhile, the creator of the Bollinger Bands, John Bollinger, made a rare prediction for ETH over the weekend, highlighting a ‘W bottom’ in the bands, which is a bullish reversal pattern.

John Bollinger makes barely one crypto call per year and hasn’t made one for ETH in three years until yesterday, said futures trader ‘Satoshi Flipper.’

“And each call he makes goes on to mark generational bottoms. He just told us ETH has bottomed, now imagine fading this legend.”

Ethereum OI falls

Ether Open Interest is now down 45% from its peak, meanwhile, Ethereum is only down 20% from its peak, observed investor Ted Pillows on Sunday.

“This is actually a very bullish thing, as speculation is now very low.”

If ETH rallies from here, it could pump toward $5,500 to $6,000 without getting too overheated, he predicted.

OI is the value or number of open Ether options contracts that have yet to be settled. It peaked at $21 billion in late August, according to Coinglass.

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