Ethereum price prediction: ETH looks set to test $4,000

ETH bulls are looking at a further rise after bouncing off the $2,650 floor.

Ethereum ‘s price has broken higher in the past 24 hours after starting an uptrend from a $2,650 floor reached during the Evergrande-catalyzed crypto-currency sell-off this week. Given the possibility of profit-taking, Ether could see sideways action in the $3,000-$3,300 region before a further rise takes prices towards $4,000.

According to blockchain data analysis platform Santiment, the 7-day moving average ratio of market value to realized value (MVRV) for Ethereum indicates that ETH is currently priced below its “fair value.” The data indicates that most short-term holders are at a loss, a scenario that is likely to see a spike in pressure on the buy side leading to another rebound in Ethereum’s price.

Short-term outlook for Ethereum’s price

Ethereum’s bounce off support at $2,650 has seen the bulls heading higher, as seen on the hourly chart of the ETH/USD pair. The crypto-currency’s rally included a spike above a downtrend line formed since the September 19 downtrend.

The rally sees ETH well above the 50 SMA, with bulls likely to focus on forming a new support base at the horizontal resistance line near $3,100.

The Super Trend indicator is signaling buying pressure for Ethereum, with the uptrend likely to continue if buyers break above the 1.236 Fib level ($3,210).

A successful break of the 200 SMA (hourly chart) will validate the buy signal and could allow ETH/USD to look for further gains near the $3,500 supply wall. From there, buyers can aim for a retest of the $4,000 level, with the possibility of seeing a new all-time high before the 2021 close.Ethereum price prediction: ETH looks set to test $4,000

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ETH/USD Hourly Chart. Source: TradingView

Technical indicators that also support the above outlook are the parabolic SAR below the price level, the RSI in a positive divergence near the overbought territory, and the MACD line above the signal line and looking to strengthen in the bullish zone.Ethereum price prediction: ETH looks set to test $4,000

Bullish indicators on the ETH/USD chart. Source: TradingView

Based on the technical outlook above and the channel data mentioned earlier, traders are likely to target a rise to $4,000 by early October. On the downside, sellers may want a retest of the main support area around $2,800-$2,720.

According to technical analyst Rekt Capital, a monthly ETH close in the $2,777 region would allow bulls to “enjoy an October in the green.”