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Ethereum (ETH) has rebounded by a significant 4.7% over the past 24 hours, regaining an important support zone. This performance has fueled bullish sentiment among some market watchers, who believe the cryptocurrency will break through key resistance levels within the next few days.
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Ethereum regains major support
Almost a week ago, Ethereum soared above $4,000 for the first time in nine months, moving closer to March highs and the long-awaited $4,100 resistance. However, the rise in cryptocurrencies came to a temporary halt as the cryptocurrency market showed a significant decline.
Earlier this week, ETH fell nearly 10%, dropping below $3,500 while Bitcoin fell to $95,000. After the retrace, the second-largest cryptocurrency by market capitalization rose steadily and regained the $3,800 support zone on Wednesday afternoon.
ETH price then rose another 2% early Thursday morning, once again trading above the $3,900 level. As Ethereum regained this key zone, crypto analyst Karl Runefeld noted that the cryptocurrency was trading above the ascending support trend line it lost during the market correction.
Additionally, the altcoin king is retesting its 6-day downtrend line on the 4-hour chart and will be targeting a sharp rally towards $4,000 after a successful breakout from the $3,940 mark. .
Ethereum broke through this resistance over the next few hours, surging to a daily high of $3,985 before falling back to $3,945. According to analysts, if sustained above this level, ETH price could rise to $4,100 within a few days.
Will ETH reach $5,000 soon?
Despite reclaiming the $3,900 zone, Ethereum still needs to successfully turn further multi-year resistance into support, according to some analysts. Analyst Alex Clay recently pointed out that ETH has been retesting the $9,350 level since 2021 and has failed to convert the $9,350 level into support in the past few years.
Ethereum faced rejection at this resistance level on four different occasions. However, once ETH broke through and held this level, it rallied towards its all-time high (ATH) of $4,878 about three years ago.
Crypto analyst Jere suggested that Ethereum is preparing for a major move as it recently broke out of a multi-year pennant. ETH-based exchange traded funds (ETFs) have seen significant gains since the post-election rally.
The ETH ETF saw more than $500 million in inflows this week, and more than $1.3 billion so far this month, data from Farside Investors shows. This indicates increased demand from institutional investors, further increasing the momentum of the cryptocurrency.
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Additionally, World Liberty Financial Initiative (WLFI), a DeFi project backed by Donald Trump, acquired approximately $10 million in ETH yesterday. According to Lookonchain, the WLFI wallet purchased 2,631 ETH at a price of $3,801 per token.
Jelle said this “seems like the ETH season has gotten the 'go ahead' nod from institutions.” If Ethereum regains support at the $3,950 resistance level, “this will prevent it from making new all-time highs from here.” There will be very little left,” the analyst added.
He predicted that Ethereum could reach $5,000 after the breakout and that 2025 will be “the year of ETH's comeback.” As of this writing, ETH is trading at $3,951, up 4.7% on a daily basis.
Ethereum 1 week chart performance. Source: ETHUSDT on TradingView
Featured image from Unsplash.com, chart from TradingView.com
