Ethereum (ETH) has recently experienced a notable recovery, rising by 4.7% within the last 24 hours. This surge has allowed it to reclaim a critical support zone, invigorating bullish sentiments among market analysts. Many believe that Ethereum is poised to surpass a pivotal resistance level in the near future, potentially setting the stage for further gains.
Ethereum Reclaims Key Support
Ethereum’s journey above $4,000 nearly a week ago marked its first venture into this territory in nine months, approaching the much-anticipated $4,100 resistance level. However, this upward momentum faced a temporary halt as the broader crypto market underwent a significant pullback. Earlier this week, ETH saw a nearly 10% retracement, dropping below $3,500, while Bitcoin retraced to $95,000. Despite this, Ethereum has steadily regained its footing, climbing back to the $3,800 support zone by Wednesday afternoon.
In the early hours of Thursday, Ethereum’s price increased by another 2%, reaching above $3,900 once more. Crypto analyst Carl Runefelt highlighted that Ethereum was trading back above its ascending support trendline, which it had momentarily lost during the market correction. Additionally, Ethereum was retesting a six-day downtrend line on the 4-hour chart, signaling a potential surge towards $4,000 following a successful breakout from the $3,940 threshold.
Ethereum managed to surpass this resistance, reaching a daily high of $3,985 before settling at $3,945. According to analysts, maintaining a position above this level could propel Ethereum’s price to $4,100 in the days to come.
Potential Path to $5,000 for Ethereum
Despite reclaiming the $3,900 zone, analysts suggest that Ethereum must transform another longstanding resistance into support. Analyst Alex Clay noted that Ethereum has been testing the $9,350 level since 2021, yet has not succeeded in converting it into a support marker consistently over the years.
Ethereum has encountered rejection at this resistance level on four occasions. However, when Ethereum successfully breached and maintained this level, it rallied towards its all-time high (ATH) of $4,878 approximately three years ago. Crypto analyst Jelle indicated that Ethereum is on the brink of significant movements, having recently broken out of a multi-year pennant pattern.
ETH-based Exchange-traded funds (ETFs) have experienced a considerable increase since the post-election rally. According to Farside Investors’ data, ETH ETFs have attracted over $500 million in inflows this week and more than $1.3 billion since the beginning of the month. This trend suggests a growing demand from institutional investors, enhancing Ethereum’s market momentum.
Institutional Investments and Market Outlook
Moreover, the Donald Trump-backed DeFi initiative, World Liberty Financial Initiative (WLFI), recently acquired approximately $10 million worth of Ethereum. The WLFI wallet purchased 2,631 ETH at $3,801 per token, according to Lookonchain. Analyst Jelle commented that this move indicates a “go-ahead” signal for Ethereum from institutional investors.
Jelle further predicted that if Ethereum manages to turn the $3,950 resistance into support, the path to new all-time highs becomes more accessible. He also forecasted that Ethereum could reach $5,000 after breaking out, with 2025 potentially being a “comeback year for ETH.” As of this writing, Ethereum is trading at $3,951, marking a 4.7% increase in the daily timeframe.
