Ethereum Surges 4.7% as It Reclaims $3,800 Support Level
Ethereum (ETH) has experienced a 4.7% recovery in the last 24 hours, reclaiming a crucial support zone. This recovery has generated bullish sentiment among market observers, who anticipate a potential breakout above a key resistance level soon.
Ethereum Reclaims Key Support
Ethereum surpassed $4,000 for the first time in nine months, approaching the long-awaited $4,100 resistance level. However, this rally was temporarily halted due to a significant pullback in the crypto market.
Earlier this week, ETH retraced nearly 10%, dropping below $3,500 as Bitcoin fell to $95,000. Following this dip, ETH has gradually recovered, regaining the $3,800 support zone on Wednesday afternoon.
ETH's price increased by another 2% early Thursday, trading above $3,900. As Ethereum reclaimed this key zone, analyst Carl Runefelt noted that it returned above its ascending support trendline lost during the market correction.
Additionally, Ethereum was retesting a six-day downtrend line in the 4-hour chart, potentially targeting a surge toward $4,000 after breaking out from the $3,940 mark.
Ethereum broke above this resistance shortly thereafter, reaching a daily high of $3,985 before retracing to $3,945. Analysts suggest that maintaining this level could allow ETH to approach $4,100 soon.
ETH To $5,000 Soon?
Despite reclaiming the $3,900 zone, analysts indicate that Ethereum must successfully convert another multi-year resistance into support. Analyst Alex Clay pointed out that ETH has been attempting to turn the $9,350 level into support since 2021, facing rejection at this level four times. A successful break above this resistance previously led to a rally towards its all-time high of $4,878 three years ago.
Crypto analyst Jelle suggested that Ethereum is poised for significant movements following its breakout from a multi-year pennant. ETH-based Exchange-traded funds (ETFs) have seen substantial inflows, with over $500 million this week and more than $1.3 billion since the start of the month, indicating heightened institutional demand.
Furthermore, the Donald Trump-backed DeFi project World Liberty Financial Initiative (WLFI) acquired approximately $10 million in ETH recently. Lookonchain reported that the WLFI wallet purchased 2,631 ETH at $3,801 per token.
Jelle remarked that this development suggests institutions are signaling readiness for an ETH season. If Ethereum can maintain the $3,950 resistance as support, there may be minimal barriers to achieving new all-time highs. He projected that Ethereum could reach $5,000 post-breakout and anticipates 2025 as a “comeback year for ETH.” Currently, ETH is trading at $3,951, reflecting a 4.7% increase in the daily timeframe.
