As Bitcoin continues its surge past the $100,000 mark, Ethereum (ETH) is making strides to break through a crucial resistance zone. The second-largest cryptocurrency has seen a 10% increase in the past week, rising from $3,500 to the $3,900 resistance level. This recent rally has sparked optimism among investors, with some speculating that ETH could follow a similar trajectory to Bitcoin’s rally in 2020-2021.
Ethereum’s climb to reclaim the $3,900 level is significant, as it marks the first time in six months that the cryptocurrency has surpassed the $3,800 mark. As ETH approaches its yearly high of $4,093, sentiment around its short-term performance has turned bullish. Analysts are closely watching as Ethereum tests a major multi-year resistance zone, with the potential to push ETH to a new all-time high.
According to analyst Alex Clay, Ethereum is making a strong attempt to break through the key resistance zone on the weekly timeframe. Despite facing rejection from the upper resistance at $3,950 multiple times in 2021, ETH managed to surpass this level late last year when it hit its previous all-time high. If Ethereum successfully breaks above this level and turns it into support, it could pave the way for a new all-time high.
Crypto analyst Jelle also sees parallels between Ethereum’s current setup and Bitcoin’s chart in July 2020. Just as Bitcoin broke through a multi-year downtrend line in 2020, Ethereum has breached a similar trendline recently. Jelle believes that this breakout could lead to a significant rally for ETH in the coming months, similar to Bitcoin’s 500% surge from mid-2020 to April 2021.
Looking ahead, Jelle predicts a potential 150-200% rally for Ethereum, with the cryptocurrency potentially reaching the $10,000-$12,000 price range in this cycle. As of now, ETH is trading at $3,905, showing a 2.4% increase in the daily timeframe. If Ethereum continues on its current trajectory, investors could be in for a treat as the cryptocurrency aims for new highs.
In conclusion, Ethereum’s recent performance and potential for a breakout have sparked excitement among investors and analysts alike. As the cryptocurrency market continues to evolve, all eyes are on Ethereum as it strives to reach new milestones and set new records in the coming months.