Ethereum appears ready for a major breakthrough above the highly anticipated four thousand dollar price level. Despite this possibility, the cryptocurrency has recently fallen short of the expectations of many investors and traders. The much hyped launch of Spot Ethereum ETFs, instead of causing a rally, turned into a classic sell the news event, leading to disappointment in the market.

However, according to a crypto analyst, the overall feeling around Ethereum remains positive. This optimism is largely supported by some bullish investors who continue to hold up the cryptocurrency and its stability at a crucial support level of three thousand two hundred dollars.

Ethereum Set For A Breakout

In a Tradingview post, crypto analyst RLinda shares some interesting analysis about Ethereum’s current performance. On the price side of things, Ethereum corrected by a huge eleven point five percent in just two days after the launch of Spot Ethereum ETFs on July twenty three. Although it has since recovered some of these losses, Ethereum is still in this corrective phase limited by tests of key zones of interest around the zero point five Fibonacci retracement level and also testing the two hundred day moving average MA two hundred.

RLinda’s analysis shows that this corrective test of the MA two hundred caused a significant breakdown below the critical support level of three thousand two hundred dollars, with Ethereum’s price reaching a low at three thousand one hundred and fifteen dollars on July twenty five. However, this dip below three thousand two hundred dollars proved to be a false breakdown, as it triggered a strong influx of buyers who successfully prevented further declines.

To keep the broader bullish momentum, RLinda emphasizes the importance of bulls keeping Ethereum’s price above the three thousand two hundred dollar support level. If they succeed, it could open the way for a renewed bullish rally, potentially driving the price to break through key resistance levels and target the four thousand to four thousand nine hundred dollar range.

Achieving this bullish resurgence would require Ethereum to overcome significant resistance around three thousand three hundred and fifty seven dollars and three thousand five hundred and forty dollars, which are identified as strong order blocks.

Current Price Action

At the time of writing, Ethereum is trading at three thousand three hundred and seventy dollars, having rebounded by four point seven eight percent from a low of three thousand two hundred and nineteen dollars in the past twenty four hours. This recovery places the cryptocurrency just above RLinda’s first resistance level of three thousand three hundred and fifty seven dollars.

Ethereum’s path could unfold in one of two ways. The cryptocurrency might continue its upward momentum and test the next significant resistance at three thousand five hundred and forty dollars. Successfully passing this level could open the way for a breakthrough above the order block, signaling further bullish potential up until four thousand nine hundred dollars. On the other hand, Ethereum could face a reversal, potentially dropping back below three thousand three hundred dollars. This would suggest a retest of lower support levels and a possible extension of the consolidation phase.