On May 10th, ETH bull easily cleared the overhead hurdle at $4,000, which also pushed the biggest altcoin's market dominance to over 19%.
But today, ETH performed a sharp correction, plunging as low as $3,659, then consolidated at the range of $3900-$3950.
Since DeFi projects are built on Ethereum, the value a DeFi user places on ETH's utility may be different than the speculative value a trader places on ETH, which may differ greatly from the value a fundamental investor places on ETH.
In addition, with ETH 2.0 and the EIP-1559 proposal forthcoming, we predict that there still be a long way for ETH Bullish and ETH is possible to reach $10,000 this year.
ETH/USDT Technical Analysis
ETH price now is correcting gains. It spiked below the $4,000 and $3,800 support levels. It climbed above the 23.6% Fib retracement level of the recent decline from the $4,226 high to $3,659 low.
The main resistance is now near the $4,000 level. A successful close above the $4,000 level could trigger another rally. A deeply overbought level on the RSI indicates a buying frenzy as traders fear missing out on the rally. Generally, such rallies top out after the last bull has purchased. The ETH/USDT pair could rise to $4,500 and then to the psychological level at $5,000.
On the downside, the $3,800 level is a key support. There is also a major bullish trend line forming with support near $3,800 on the 4-hours chart. If there is a downside break below the trend line, the price could test the $3,600 support.