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Ethereum, the second largest cryptocurrency, has returned to $4,000 following a drop in the week just concluded amid a decline in risk sentiment.
At the time of writing, ETH was up 0.43% in the last 24 hours to $4,008, but down 10.07% weekly.
Ethereum fell for five straight days from Sept. 20 to reach a low of $3,825, its weakest level in nearly seven weeks, before paring the drop.
The major cryptocurrency rebounded to a high of $4,071 on Friday following the release of the PCE report, regarded as the Fed's favored inflation gauge, but this traction was short-lived.
This is as Ethereum's momentum paused, with price showing little to no change in the last 24 hours. ETH's price remains tightly locked between $3,974 and $4,040, with the market awaiting its next move.
Three key levels crucial to watch
While traders watch out for where ETH trends next, whether to the upside or downside, crypto analyst Ali highlights three key levels to watch for the ETH price in the event of an upside move.
Ali stated in a tweet that the three resistance levels to watch for Ethereum (ETH) are $4,158, $4,307 and $4,505, with a breach of these key levels ultimately leading ETH to the $5,000 target.
In a recent tweet, Dr Martin Hiesboeck, Uphold's head of research, stated that confidence in Ethereum is rising. Institutional investor BitMine recently increased its stake to 2.42 million ETH, now holding over 2% of the total supply. This accumulation matches major traditional finance moves: REX Shares is launching its REX-Osprey ETH staking ETF, and Morgan Stanley is adding support for ETH trading on E*Trade, offering millions of clients direct access. Further strengthening the market, ETHZilla raised another $350 million specifically to buy more ETH.
Ethereum's scaling efforts are also hitting milestones, with the network achieving a new record of six blobs per block, signifying heavy utilization of the data-availability layer by Layer 2s and confirming the success of the Dencun upgrade.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team