Analysts Eye $4,100 As ETH Reclaims Key Support
Ethereum (ETH) has surged 4.7% over the past 24 hours to regain key support areas. This performance has fueled bullish sentiment among some market observers, who believe that the cryptocurrency will break through key resistance levels in the coming days.
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Ethereum regains critical support
Nearly a week ago, Ethereum broke above $4,000 for the first time in nine months, approaching March highs and long-awaited resistance at $4,100. However, the cryptocurrency’s rally has temporarily paused after a sharp correction in the cryptocurrency market.
Earlier this week, Ethereum Backtrace Bitcoin fell nearly 10% to fall below the $3,500 mark as it recovered to $95,000. Following the pullback, the second-largest cryptocurrency by market capitalization steadily recovered, reclaiming the $3,800 support area on Wednesday afternoon.
In the early hours of Thursday morning, the price of ETH rose another 2% and once again exceeded the $3,900 level. Cryptocurrency analyst Carl Runefelt as Ethereum reclaims this key area famous The cryptocurrency is trading back above its ascending support trendline, which it lost during the market correction.
Additionally, the altcoin king is retesting the six-day descending trendline on the 4-hour chart, targeting a surge to $4,000 after successfully breaking above the $3,940 mark.
Ethereum broke above this resistance in the following hours, surging to a daily high of $3,985 before falling back to $3,945. Analysts say that staying above this level could push the price of ETH to $4,100 in the coming days.
Will ETH hit $5,000 soon?
Some analysts say that although Ethereum regained the $3,900 area, it still needs to successfully turn another multi-year resistance level into support. Analyst Alex Clay recent noted that ETH has been retesting the $9,350 level since 2021 but has failed to successfully turn it into a support level over the past few years.
Ethereum has faced rejection at this resistance level on four separate occasions. However, when ETH broke through and held this level, it rebounded to its all-time high (ATH) of $4,878 from approximately three years ago.
Cryptocurrency Analyst Jer suggestion Ethereum is gearing up for massive action as it recently broke out of a multi-year pennant. ETH-based exchange-traded funds (ETFs) have surged significantly since the post-election rally.
As a remote investor data It shows that the ETH ETF has seen inflows of more than $500 million this week, and more than $1.3 billion since the beginning of this month. This indicates increased demand from institutional players, adding to the cryptocurrency’s momentum.
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Additionally, the World Free Finance Initiative (WLFI), a DeFi project backed by Donald Trump, acquired approximately $10 million in ETH yesterday. Lookonchain says WLFI wallet purchased 2,631 ETH at a price of $3,801 per token.
For Jelle, “It looks like the ETH season just got the institutional nod of ‘continue.’” The analyst added that if Ethereum reclaims $3,950 resistance as support, then “new history is made from here. The highs will be few and far between”.
He predicts Ethereum Can After breaking out to hit $5,000, 2025 will be “the year of ETH’s comeback.” As of this writing, ETH is trading at $3,951, with an average daily gain of 4.7%.
Featured image from Unsplash.com, chart from TradingView.com
