This article is also available in Spanish.
As bitcoin finally surpasses the long-awaited $100,000 milestone, ethereum (eth) attempts to break out of a key resistance zone. The cryptocurrency's second-biggest rally has fueled optimism about its goals, with some suggesting it could mimic btc's rally in 2020-2021.
Related reading
ethereum recovers $3,900
ethereum, the second-largest cryptocurrency by market capitalization, recorded a 10% rise last week, moving from the $3,500 mark to the $3,900 resistance. On Wednesday, the altcoin king surpassed the $3,800 level for the first time in six months and continued rising to retest the $3,900 resistance, not seen since early March.
In the early hours of Thursday, eth turned this key zone into support, briefly falling to $3,860 before returning to the recently recovered level. As the cryptocurrency approaches its yearly high of $4,093, sentiment around the token's near-term performance has become extremely bullish.
ethereum is retesting a massive multi-year resistance zone, which could send eth to a new ATH. According to analyst Alex Clay, the cryptocurrency attempts <a target="_blank" href="https://x.com/cryptclay/status/1864664634461950052″ target=”_blank” rel=”nofollow”>break “through the key resistance zone on the weekly period.”
eth has rested in the key zone five times since 2021, facing rejection from the overhead resistance at $3,950 on four occasions before. However, ethereum surpassed this level at the end of 2021, when it reached its all-time high (ATH) and remained above it for almost three months.
The analyst noted that if the King of Altcoins successfully breaks through this level and turns it into support, it will be the next “to break” and crush its ATH. Clay added that he doesn't see “any major setback in the short term.”
Similarly, cryptanalyst Jelle <a target="_blank" href="https://x.com/CryptoJelleNL/status/1864653975284310150″ target=”_blank” rel=”nofollow”>fixed that if ethereum breaks the March high, “all bets are off,” suggesting that the chances of eth taking a long period of consolidation before a new ATH like btc did were “very low.”
Will eth rally towards $10,000?
Jelle also noted that ethereum's current setup mimicked that of bitcoin in July 2020. According to the chart, bitcoin broke a multi-year bearish trend line in mid-2020, followed by a massive 500% rally in 10 months towards the $60,000 mark in April 2021.
The analyst noted that eth broke the multi-year trend line today, just like btc did in 2020, which could trigger a similar rally to new highs in the coming months. He added that investors “will be in for a treat if something similar happens.”
In another post, he <a target="_blank" href="https://x.com/CryptoJelleNL/status/1864634058770161781″ target=”_blank” rel=”nofollow”>highlighted that ethereum started to recover when bitcoin broke its ATH and entered price discovery when btc traded almost 100% above its previous cycle high.
Related reading
He believes it would be surprising “to see things develop in a similar way this time. “btc and eth rise in tandem, leading eth to enter price discovery somewhere around ±$130,000.”
Based on this, the analyst believes that a 150-200% rally towards the $10,000-$12,000 price range for the cryptocurrency is possible for this cycle. At the time of writing, eth is trading at $3,905, up 2.4% on the daily period.
Featured image from Unsplash.com, chart from TradingView.com
