Ethereum Retests $3,850 Resistance Amid Analyst Predictions for $5,000 Target
Ethereum (ETH) is making a push to breach the $3,850 resistance level after recovering from previous lows. Analysts suggest this could lead to a new high this quarter.
Key Developments
- On Thursday, ETH surged 6.3%, reaching $3,850, influenced by news of a potential executive order enabling investments in alternative assets for 401(k) plans.
- The executive order may direct the Department of Labor to revise guidelines related to alternative asset investments in retirement plans, impacting the $12.5 trillion industry.
- ETH has been trading between $3,400 and $3,800 since mid-July, attempting to break through major resistance three times.
- Last week, ETH achieved a seven-month high of $3,941 before retracing to support levels around $3,350-$3,400.
- This week, ETH traded in the $3,600-$3,700 range before surpassing $3,800 to retest $3,850.
- Analyst Alex Clay noted that ETH's correction seems over and anticipates an imminent breakout based on technical patterns.
- Analyst Ted Pillows indicated that ETH is close to a major breakout, drawing parallels to its May-June performance.
- A breakout above $3,900 could see ETH exceed $4,000, with a target of $5,000 by quarter’s end suggested by analysts.
- Ethereum Dominance (ETHDOM) has risen above 12%, marking its first uptrend in five years, potentially indicating a consolidation phase similar to July 2020.
- Current trading price for ETH is $3,826, reflecting a 48% monthly increase.
