As Bitcoin finally reaches the long-anticipated $100,000 milestone, Ethereum (ETH) is making significant strides to overcome a crucial resistance zone. This momentum in the second-largest cryptocurrency has sparked optimism among investors, with parallels being drawn to Bitcoin’s remarkable rally during 2020-2021.
Ethereum’s Journey to Reclaim $3,900
Ethereum, a leading force in the cryptocurrency market, has witnessed a remarkable 10% increase over the past week. This uptick saw its value rise from $3,500 to the challenging $3,900 resistance level. On Wednesday, Ethereum broke through the $3,800 barrier for the first time in six months, continuing its ascent to retest the $3,900 resistance, a level unseen since early March.
In the early hours of Thursday, ETH transformed this critical zone into a support level, momentarily dipping to $3,860 before rebounding to its recently regained position. As ETH edges closer to its yearly high of $4,093, market sentiment about its short-term performance has turned exceptionally bullish. Ethereum is testing a significant multi-year resistance area, which could potentially propel ETH to uncharted all-time highs.
Analyzing Ethereum’s Resistance Challenges
According to analyst Alex Clay, Ethereum is making attempts to breach the “Key Resistance Zone on the weekly timeframe.” Since 2021, ETH has tested this key area five times, previously facing rejection at the upper resistance of $3,950 on four occasions. However, in late 2021, Ethereum successfully surpassed this level, reaching its all-time high (ATH) and maintaining that position for nearly three months.
Clay suggests that if Ethereum can break through this level and establish it as a support, it will be poised to break further and potentially set new ATHs. He emphasizes that he anticipates “no major pullback in the near term.” Crypto analyst Jelle shares a similar outlook, speculating that if Ethereum surpasses its March high, it could avoid a prolonged consolidation phase before achieving a new ATH, akin to Bitcoin’s previous trajectory.
Could Ethereum Rally Toward $10,000?
Jelle also observes that Ethereum’s current setup mirrors Bitcoin’s situation in July 2020. According to his analysis, Bitcoin broke through a long-standing downtrend line by mid-2020, leading to an impressive 500% rally over ten months, culminating at $60,000 in April 2021. Jelle notes that Ethereum has breached its multi-year trendline, reminiscent of Bitcoin’s 2020 scenario, which might trigger a comparable rally to new highs in the upcoming months. He suggests that investors could be in for a significant reward if the pattern unfolds similarly.
In a subsequent update, Jelle highlighted that Ethereum began its upward trajectory when Bitcoin surpassed its ATH and entered price discovery, nearly doubling its previous cycle high. He speculates that it would be surprising to see a similar pattern unfold, with both BTC and ETH climbing in tandem, potentially leading Ethereum into price discovery around ±$130,000.
Ethereum’s Potential for a 150-200% Rally
Based on these observations, Jelle believes that Ethereum could experience a 150-200% rally, targeting a price range of $10,000-$12,000 within this cycle. As of the current analysis, Ethereum is trading at $3,905, marking a 2.4% increase within the daily timeframe.
Ethereum’s performance continues to capture attention on the weekly chart, offering insights into the evolving dynamics of the cryptocurrency market. As Ethereum navigates these critical levels, its trajectory remains a focal point for investors aiming to capitalize on its potential for significant gains.
