Ethereum (ETH), the second-largest cryptocurrency, is showing signs of resurgence after hitting the $3,100 support zone last week. With market analysts suggesting a potential bullish run in 2025, Ethereum enthusiasts are keenly observing its attempts to break free from its recent downtrend.
Ethereum Key Levels To Reclaim
As we approach the end of 2024, the crypto community is abuzz with speculation about the market’s trajectory in the coming year. Despite recent setbacks, many analysts are optimistic about Ethereum’s performance in 2025. The cryptocurrency has faced challenges in establishing the $4,000 level as a solid support. After exceeding this mark earlier this month, Ethereum has faced rejections thrice. The latest attempt saw ETH reaching $4,100 before experiencing a 7.3% pullback.
Following Bitcoin’s (BTC) decline to $92,000, Ethereum also fell to the $3,100 support zone, marking its lowest point in a month. Since then, ETH has been oscillating between $3,200 and $3,550, struggling to breach the upper boundary of this range over the last four days. Nevertheless, the cryptocurrency has managed to break out of its downtrend line and is now eyeing a reclaim of the $3,500 support level. A crypto analyst observed that Ethereum seems to have broken and retested its one-week downtrend after securing the $3,400 support.
An analyst noted that a “clean breakout” from this downtrend could propel Ethereum to test higher levels. Ali Martinez highlighted that the next significant support zone for ETH is between $3,032 and $3,132, where 4.85 million ETH were acquired by 3.69 million addresses. Conversely, Ethereum faces a considerable resistance wall between $3,640 and $3,740, where over 2 million addresses purchased approximately 4.3 million ETH. According to Martinez, “A sustained close outside this no-trade zone will determine the direction of ETH’s trend.”
Will ETH Follow 2021’s Performance?
Analyst Ted Pillows highlighted a pattern where “the first four months after U.S. elections are often highly bullish for ETH.” Historical data shows significant gains for Ethereum in the initial months following the 2016 and 2020 U.S. elections. In 2017, Ethereum surged by 31.92% in January, whereas January 2021 saw an impressive 78.51% increase. Both years witnessed peak monthly performances in March and April, with returns of 214% and 44% in 2017 and 2021, respectively.
If Ethereum replicates this historical trend, its price could surpass its all-time high (ATH) of $4,878 in January and continue its upward trajectory throughout the first quarter. Crypto trader Immortal noted that Ethereum’s recent price movement bears a resemblance to its 2020-2021 performance. The chart reveals a significant rise in early 2021, followed by a phase of consolidation and a subsequent breakout, culminating in a sharp decline to test the consolidation zone.
In 2021, after reclaiming its breakout levels, Ethereum continued its rally towards its previous ATH of $4,300, eventually reaching its current ATH by year-end. The trader suggests that ETH is currently retesting the consolidation range after last week’s dip, indicating a potential rally in the weeks ahead if it follows a similar pattern. As of now, Ethereum is trading at $3,501, marking a 6.3% increase in the last 24 hours.
