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Following the recent market surge, major cryptocurrencies have seen notable performance. bitcoin is trading above the $64,000 mark, while ethereum (eth) is up 9% in the past week to consolidate above a key support level.
Despite the bullish sentiment, some cryptocurrency investors remain cautious about eth's performance as the second-largest cryptocurrency faces the next crucial resistance level.
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ethereum consolidates above $2,600
ethereum recorded a 13% price jump in the last seven days after the US Federal Reserve (Fed) announced its decision to cut the interest rate by 50 basis points (bps). The bullish momentum pushed the price of eth to ranges not seen in a month, generating positive sentiment among many investors.
Over the weekend, the “King of Altcoins” jumped from the $2,300 support zone to the $2,500 mark before reclaiming the $2,600 resistance level to start the week. Since then, the cryptocurrency has oscillated between the $2,600-$2,684 price range, momentarily falling below the key support level on Wednesday afternoon.
However, ethereum has faced resistance today after recovering from the recent drop to $2,500. crypto Yapper Market Analyst x.com/CryptoYapper/status/1839244622821753229″ target=”_blank” rel=”nofollow”>noted that eth had been “encountering critical resistance on the daily chart” as it had failed to successfully break above the $2,650 mark since Tuesday.
This behavior worried some investors, who considered that failure to surpass this level could hinder the cryptocurrency's advance and send the price towards previous support zones.
However, ethereum price rose 1% in the last hour to trade above $2,650. At the time of writing, eth is trading at $2,660, recording a price increase of 2.1% and 9.3% on the daily and weekly time frames.
Will eth hit new highs in October?
Daan, cryptocurrency trader x.com/DaanCrypto/status/1839243767901204782″ target=”_blank” rel=”nofollow”>highlighted that ethereum price reached a higher low (HL) but has not yet been able to reach a higher high (HH). The trader noted that a HH would occur above the $2,820 mark, which was lost over a month ago, and would mean a trend change for the cryptocurrency.
This level corresponds to the horizontal level that started the February-March run to $4,090 after the breakout. Additionally, it coincides with the daily 200 EMA around that area, making it “an important level to watch.”
A break above this mark could further push eth price towards the $3,000 resistance level. Julien Bittel, head of macro research at Global Macro Investor (GMI), x.com/BittelJulien/status/1839004251021836453″ target=”_blank” rel=”nofollow”>noted that ethereum's chart “looks a lot like a 2023 drawdown.”
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Based on the chart, the cryptocurrency's current market structure closely resembles its 2023 moves. A repeat of eth's previous bullish trajectory suggests that eth price is about to break out and hit a new all-time high (ATH) from mid to late October.
Furthermore, the chart shows that if it continues the same bullish trend, ethereum price has the potential to reach somewhere between the $10,000 and $20,000 targets by the first quarter of 2025, which would represent a 669% increase from its current price and a 300% jump from its current price. ATH.
Featured image from Unsplash.com, chart from TradingView.com
