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ethereum (eth) price is finally moving after a week of sideways movement. In the past hour, the second-largest cryptocurrency has seen a 5% surge to retest the key $3,200 level. Some market watchers believe eth is about to rally towards Q1 highs and kick off the alt season. .
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ethereum Retests Key Support Level
ethereum has been heavily criticized for its performance against bitcoin (btc), and investors are concerned that eth will not reach new highs this cycle. eth price action has moved sideways as the flagship cryptocurrency continues its price discovery mode.
On Thursday morning, btc approached the $100,000 mark after hitting its latest all-time high (ATH) above $98,000, while eth continued to float in the middle zone of its one-week price range of $3,000. -$3,200.
However, ethereum has seen a notable 5% rise to trade above the $3,200 mark over the past hour. The second-largest cryptocurrency rose above $3,200 a week ago for the first time in more than three months, reaching the $3,400 mark before retreating 5%.
Over the past week, eth attempted to reclaim the $3,200 resistance as support but failed twice to do so. Today, the cryptocurrency's jump has pushed its price past key resistance towards the mid-range of the $3,300 zone, reigniting bullish sentiment towards ethereum.
crypto Yapper Analyst <a target="_blank" href="https://x.com/CryptoYapper/status/1859162135781085597″ target=”_blank” rel=”nofollow”>stated that $3,200 is “the next big breakout” for ethereum, as it has been a major rejection point over the last week. The analyst highlighted that after eth consolidation, the next move was a retest of this level, which could see the crypto break towards the $3,500 mark if it recovers successfully.
However, if this resistance fails to be converted into support, eth price is likely to lose the support at $3,000-$3,100 and move towards the $2,600 level, a major resistance ahead of this month's breakout, before attempting to reach the $3,500.
eth Breakout to Start Alt Season
crypto Analyst Rekt Capital <a target="_blank" href="https://x.com/rektcapital/status/1859579809623376180″ target=”_blank” rel=”nofollow”>noted that eth is breaking out of a short-term bull flag today. According to the publication, the altcoin king broke a three-week bull flag formation after surpassing $3,200. A confirmation of the breakout “would take eth back to the previous $3,700,” the analyst predicted.
Similarly, cryptanalyst Zayk <a target="_blank" href="https://x.com/ZAYKCharts/status/1859475115081085130″ target=”_blank” rel=”nofollow”>pointed out that the cryptocurrency showed a two-week bullish pennant formation in the 4-hour period. A successful breakout of the bullish pattern above the $3,200 mark could point to a 15% rally to $3,700.
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Daan Cryptocurrency Trader <a target="_blank" href="https://x.com/DaanCrypto/status/1859581728429359511″ target=”_blank” rel=”nofollow”>fixed that investors should wait to see if ethereum's current momentum is sustained. However, he believes that the next push for eth/btc “will likely have some strength and will seek adequate relief.”
This run could send the eth/btc trading pair back towards the 0.04 mark, where it was trading two weeks ago. This move would show a 20% increase from current levels, which “should absolutely send the overall altcoin market down and reduce btc dominance by a decent amount.”
At the time of writing, eth price remains above $3,350, trading 2% below last week's high.
Featured image from Unsplash.com, chart from TradingView.com
