Ethereum To Pull A BTC 2021-Like Rally? Analyst Weighs In
Ethereum (ETH) attempts to break out of a key resistance zone as Bitcoin finally surges above the long-awaited $100,000 milestone. The second-largest cryptocurrency rally has fueled optimism about its goals, with some believing it could mimic BTC’s 2020-2021 rally.
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Ethereum recovers $3,900
Ethereum is the second largest cryptocurrency by market capitalization recorded It surged 10% over the past week, rising from the $3,500 mark to the $3,900 resistance. On Wednesday, the altcoin king broke above the $3,800 level for the first time in six months and continued to climb, retesting the $3,900 resistance not seen since early March.
ETH turned this key area into support in the early hours of Thursday morning, briefly falling to $3,860 before recovering back to recently recovered levels. As the cryptocurrency approaches yearly highs of $4,093, sentiment surrounding the coin’s short-term performance has become extremely bullish.
Ethereum is retesting a massive multi-year resistance zone, which could push ETH towards a new ATH. Analyst Alex Clay says cryptocurrencies are trying to rest “Passing key resistance areas on the weekly time frame.”
ETH has hit the key area five times so far in 2021, having previously faced rejection at resistance above $3,950 four times. However, Ethereum broke above this level in late 2021, when it hit an all-time high (ATH), and remained above this level for almost three months.
Analysts pointed out that if the king Altcoins A successful breakout of this level and converting it into support would be the next “breakout” and crush its ATH. Clay added that he doesn’t see “a major pullback in the near term.”
Likewise, cryptocurrency analyst Jelle point out “All bets are off” if Ethereum breaks out of its March highs, suggesting that the likelihood of ETH experiencing a prolonged period of consolidation before a new ATH like BTC is “very low.”
ETH heading towards $10,000?
Jelle also noted that Ethereum’s current setup mimics Bitcoin’s in July 2020. According to the chart, Bitcoin broke out of a multi-year downtrend line in mid-2020, followed by a massive 10-month 500% rally in April 2021, approaching the $60,000 mark.
The analyst noted that ETH broke above a multi-year trendline today, just like BTC did in 2020, which could trigger a similar rally to new highs in the coming months. “If something like that happens, investors will be in for a treat,” he added.
In another article, he Highlight When Bitcoin broke above its ATH, Ethereum began to rebound and entered a price discovery phase with BTC trading nearly 100% from the previous cycle high.
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“It would be surprising to see things develop similarly this time around,” he said. BTC and ETH climbed in tandem, causing ETH to enter a price discovery zone of around ±$130,000. “
Accordingly, analysts believe that 150-200% assembly During this cycle, the cryptocurrency’s price range is likely to reach $10,000 to $12,000. As of this writing, ETH is trading at $3,905, up 2.4% daily.
Featured image from Unsplash.com, chart from TradingView.com
