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ethereum (eth) has seen a major 4.7% rally over the past 24 hours, reclaiming a crucial support zone. This performance has fueled bullish sentiment among some market observers, who believe the cryptocurrency will surpass a key resistance level in the coming days.
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ethereum regains key support
Almost a week ago, ethereum jumped above $4,000 for the first time in nine months, approaching its March high and the long-awaited resistance level of $4,100. However, the cryptocurrency's rally came to a halt momentarily after the cryptocurrency market saw a significant pullback.
Earlier this week, eth retraced nearly 10%, falling below the $3,500 mark as bitcoin retreated to $95,000. After the pullback, the second-largest cryptocurrency by market capitalization has steadily risen again, reclaiming the $3,800 support zone on Wednesday afternoon.
eth price then rose another 2% in the early hours of Thursday to trade above the $3,900 level again. As ethereum reclaimed this key zone, crypto analyst Carl Runefelt <a target="_blank" href="https://x.com/TheMoonCarl/status/1867158468043386942″ target=”_blank” rel=”nofollow”>noted that the cryptocurrency was once again trading above its ascending support trend line, which it had lost during the market correction.
Furthermore, the Altcoin king was retesting a six-day downtrend line on the 4-hour chart, which would point to a rise towards $4,000 after a successful breakout from the $3,940 mark.
ethereum broke through this resistance in the following hours, hitting a daily high of $3,985 before retreating to $3,945. According to the analyst, staying above this level could push the eth price to $4,100 in the coming days.
Will eth hit $5,000 soon?
According to some analysts, despite reclaiming the $3,900 zone, ethereum still needs to successfully convert another multi-year resistance into support. Analyst Alex Clay recently noted that eth has been retesting the $9,350 level since 2021, unsuccessfully turning it into support in recent years.
ethereum has faced rejection at this resistance level on four different occasions. However, when eth broke and held this level, it recovered towards its all-time high (ATH) of $4,878 about three years ago.
Jelle crypto Analyst <a target="_blank" href="https://x.com/CryptoJelleNL/status/1867219328191353313″ target=”_blank” rel=”nofollow”>suggested that ethereum is gearing up for massive moves as it recently broke a multi-year pennant. eth-based exchange-traded funds (ETFs) have seen a massive rise since the post-election rally.
Like distant investors <a target="_blank" href="https://farside.co.uk/eth/” target=”_blank” rel=”nofollow”>data As a sample, eth ETFs have seen over $500 million in inflows this week and over $1.3 billion since the start of this month. This indicates increased demand from institutional players, increasing the cryptocurrency's momentum.
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Additionally, the Donald Trump-backed DeFi project World Liberty Financial Initiative (WLFI) acquired around $10 million worth of eth yesterday. <a target="_blank" href="https://x.com/lookonchain/status/1867036708983935325″ target=”_blank” rel=”nofollow”>Lookonchain said the WLFI wallet purchased 2,631 eth at $3,801 per token.
For Jelle, this “seems like the eth season just got the go-ahead from institutions.” If ethereum reclaims the $3,950 resistance and turns it into support, there will be “very few obstacles in the way of new all-time highs from here,” the analyst added.
He predicted that ethereum could reach $5,000 after breaking out and that 2025 will be a “comeback year for eth.” At the time of writing, eth is trading at $3,951, up 4.7% on the daily period.
Featured image from Unsplash.com, chart from TradingView.com
