The cryptocurrency market cap is above $2.5 trillion as Bitcoin and other cryptocurrencies continue to rally in the fourth quarter
The cryptocurrency market is having an excellent fourth quarter so far. Following the bearish trend in the second and third quarters, Bitcoin and the others are now back to making gains. Bitcoin is trading above the $63,000 level and could soon surpass its previous all-time high price above $64,400 if it maintains the current momentum.
Ether has also been performing well, up by more than 10% over the past seven days. The second-largest cryptocurrency by market cap rose by 3.55% on Tuesday, following a 2.65% decline on Monday. The rally puts ETH firmly above the $3,800 level, allowing it to prepare for further upward movement in the coming hours and days.
Ethereum price outlook
ETH is currently trading at $3,853 per coin after performing excellently over the past few hours. Thanks to Ethereum’s rally in recent days, the ETH/USD 4-hour chart is currently bullish, indicating that more gains could be on the cards.
The MACD line is currently in the bullish zone, while an RSI of 56 shows that Ether is moving into the overbought region. With the technical indicators pointing to a bullish performance, Ether could be primed for further gains in the coming hours.
ETH/USD 4-hour chart. Source: TradingView
Ether has been able to avoid the $3,833 pivot and, as a result, is now targeting the first major resistance level at $3,935. However, it would need the help of the broader cryptocurrency market to break past $3,900 and surpass this resistance level.
An extended rally from the cryptocurrency market would allow ETH to target the second major resistance level at $3,992 and possibly make a move towards the psychological $4,000 level.
However, in the event that ETH falls below the $3,833 pivot, it would bring the first major support level at $3,776 into focus. Unless there is an extended sell-off in the market, ETH should comfortably stay away from the sub-$3,600 levels.