Ethereum (ETH) has experienced a notable increase of 7.5% within a single day, successfully surpassing a significant resistance level for the first time in several weeks. Following this breakout, analysts are predicting that a retest of the recent highs may be imminent.
On Wednesday, Ethereum surged over 7% from its recent low, reaching the $2,550 mark and positioning itself to reclaim another vital resistance level. The leading altcoin rose from the support level of $2,380 to the $2,585 range, marking a two-week high. Since the early May breakout, the cryptocurrency has fluctuated between the $2,400 and $2,800 price range but momentarily fell below this threshold after failing to maintain the $2,550 support two weeks ago. After regaining its local range, ETH faced challenges in breaking through the $2,500 resistance, oscillating between this barrier and the lower range for an entire week. However, today’s market recovery, which also saw Bitcoin rise to $109,600, has instilled a sense of optimism among investors.
In light of today’s performance, analyst Daan Crypto Trades described ETH’s price movement as a “nice move out of the local range.” Nonetheless, he emphasized that it is crucial for bulls to maintain the $2,520 area to avoid another potential deviation or liquidity grab in a broader market fluctuation. According to him, failing to hold this level could lead the cryptocurrency back to lower range levels. Therefore, key levels to monitor include the $2,310 support and the $2,735 resistance.
Market observer Merlijn The Trader remarked that Ethereum has consistently respected its support levels, leading to what he termed “one of the cleanest breakouts we’ve ever seen.” He pointed out a three-month ascending triangle in ETH’s chart, noting that the cryptocurrency rebounded from its rising support line during the recent price fluctuations and is now targeting the crucial resistance around the $2,700 mark. With higher lows and a solid base established, he indicated that a clean break above $2,700 could propel ETH significantly, with $3,000 being just the starting point for future gains.
Merlijn also suggested that ETH’s two-year price structure is repeating, which might indicate an impending significant breakout. Historical patterns show that since 2018, Ethereum's price has moved in stages approximately every two years, beginning with a base formation, followed by a rejection and retest of the base lows, and culminating in a breakout to new highs. The previous liftoff phase from 2020 to 2022 saw ETH rise from $100 to an all-time high of $4,878. He stated, “This time we start from $1,500. Not a dip. A launchpad.”
Similarly, analyst Kaleo highlighted the structural similarities between this cycle and the last. He noted that while Bitcoin achieved a new all-time high in December 2020, Ethereum was significantly down from its previous cycle highs, causing many to speculate that it was “dead.” Nevertheless, ETH rebounded with over 800% growth, outpacing Bitcoin’s 250% increase in the subsequent months. Currently, the cryptocurrency has retraced up to 68% from its previous all-time high, while Bitcoin has reached new peaks. If historical trends hold, Kaleo concluded, “The bottom for ETH is in. Up only from here.”
As of the latest update, Ethereum is trading at $2,568, reflecting a 6.1% increase over the past week.
