Ethereum Surges to $3,900 Amid Bullish Market Sentiment
Bitcoin surpassed the $100,000 milestone, while Ethereum (ETH) is attempting to break through a significant resistance zone. This rally has generated optimism regarding ETH's potential targets, with comparisons drawn to Bitcoin’s performance in 2020-2021.
Ethereum Reclaims $3,900
Ethereum has recorded a 10% increase over the past week, rising from $3,500 to the $3,900 resistance level. On Wednesday, ETH exceeded $3,800 for the first time in six months and reached the $3,900 resistance, which has not been seen since early March.
On Thursday, ETH briefly dipped to $3,860 before returning to the reclaimed level, approaching its yearly high of $4,093, leading to a bullish sentiment regarding its short-term performance.
Ethereum is retesting a multi-year resistance zone, potentially setting the stage for a new all-time high (ATH). Analyst Alex Clay stated that ETH is attempting to break through this key resistance on the weekly timeframe.
Since 2021, ETH has faced rejection at the upper resistance of $3,950 four times. It broke above this level in late 2021, reaching its ATH and maintaining it for nearly three months.
Clay noted that if ETH successfully breaks above this level and establishes it as support, it could be poised to exceed its ATH without significant pullbacks in the near term.
Similarly, crypto analyst Jelle indicated that if Ethereum surpasses the March high, the likelihood of a long consolidation period before reaching a new ATH, similar to Bitcoin, is low.
ETH To Rally Toward $10,000?
Jelle observed that Ethereum's current setup resembles Bitcoin's in July 2020. Bitcoin's breakthrough of a multi-year downtrend line led to a substantial 500% rally toward $60,000 by April 2021.
He noted that ETH breached the multi-year trendline recently, similar to BTC in 2020, which may trigger a comparable rally towards new highs. He suggested that if this scenario unfolds, investors could expect significant gains.
In another analysis, he emphasized that Ethereum began its rally when Bitcoin surpassed its ATH and entered price discovery while trading almost 100% above its previous cycle high.
He finds it plausible that BTC and ETH could climb simultaneously, leading ETH to enter price discovery around $130,000. Based on this analysis, he anticipates a possible 150-200% rally for ETH, targeting the $10,000-$12,000 range during this cycle. Currently, ETH is trading at $3,905, reflecting a 2.4% increase in the daily timeframe.
