Ethereum (ETH) has seen a significant surge of 7.5% in the daily timeframe, breaking above a key resistance level that it has struggled with for weeks. This breakout has sparked optimism among analysts, who believe that a retest of the range highs could be on the horizon.
On Wednesday, Ethereum experienced a notable jump of over 7% from its local low to reach the $2,550 mark, marking a crucial milestone in reclaiming another important resistance level. The leading altcoin had been trading within the $2,400-$2,800 price range since its breakout in early May, but briefly lost this range after failing to maintain the $2,550 support a couple of weeks ago.
Following today’s market recovery, which also saw Bitcoin surging to $109,600, bullish sentiment has been reignited among investors. Daan Crypto Trades described ETH’s price action as a “nice move out of the local range,” but cautioned that bulls must ensure the $2,520 area is held to confirm that it is not just another deviation or liquidity grab within a larger chop.
Key levels to watch moving forward include the $2,310 support and $2,735 resistance levels, as pointed out by market watcher Merlijn The Trader. He emphasized that Ethereum has consistently respected support levels, indicating a strong breakout potential. The cryptocurrency is currently targeting the next key resistance level around $2,700.
Looking at the bigger picture, Merlijn also highlighted a two-year setup pattern in Ethereum’s chart, suggesting that a massive breakout may be on the horizon. This pattern involves a base formation, rejection, and retesting of base lows, followed by a liftoff phase leading to new all-time highs. The analyst noted that Ethereum’s previous liftoff phase, between 2020 and 2022, saw the price surge from $100 to $4,878. This time around, starting from $1,500, could signal an even more significant move.
Analyst Kaleo also drew parallels between Ethereum’s current performance and that of the previous cycle, indicating that history could repeat itself. Despite a 68% retracement from its previous all-time high, Ethereum has the potential for significant upside, outperforming Bitcoin’s growth in the coming months.
As of the latest update, Ethereum is trading at $2,568, reflecting a 6.1% increase in the weekly timeframe. The chart shows a positive momentum for Ethereum, with potential for further gains in the near future.
In conclusion, Ethereum’s recent breakout and positive price action indicate a bullish trend for the cryptocurrency, with analysts predicting a retest of key resistance levels and potential new all-time highs in the coming months. Investors are closely watching ETH’s performance as it continues to show strength in the market.