Ethereum (ETH) has surged 7.5% in the daily timeframe, breaking above a key resistance level for the first time in weeks. Analysts suggest a retest of the range highs could be imminent, fueling bullish sentiment among investors.
Ethereum Reclaims Crucial Resistance Zone
On Wednesday, ETH jumped over 7% from its local low of $2,380** to **$2,585, marking a two-week high. The cryptocurrency had been trading within the $2,400–$2,800 range since early May but briefly lost footing after failing to hold the $2,550 support two weeks ago.
Today’s recovery, coinciding with Bitcoin’s rise to $109,600, has reignited optimism.
Key Observations:
- Daan Crypto Trades noted ETH’s "nice move out of the local range" but emphasized bulls must hold $2,520** to confirm strength. A failure could send ETH back to range lows (**$2,310).
- Merlijn The Trader highlighted a three-month ascending triangle, with ETH bouncing off rising support. The next target? $2,700.
👉 Why Ethereum’s breakout could signal a major rally
Is ETH Repeating Its All-Time High Setup?
Merlijn pointed out ETH’s two-year cyclical pattern since 2018:
- Base formation (accumulation).
- Retest of lows (consolidation).
- Liftoff (breakout to ATHs).
The 2020–2022 cycle saw ETH rally 800% from $100** to **$4,878. This time? "We start from $1,500. Not a dip—a launchpad," Merlijn asserts.
Historical Parallels:
- Analyst Kaleo observed ETH’s 68% retracement this cycle, mirroring 2020 (60% down before an 800% surge).
- With BTC already at ATHs, ETH’s "bottom may be in. Up only from here."
Short-Term Levels to Watch
- Support: $2,310** (range low), **$2,520 (holding critical).
- Resistance: $2,700** (next hurdle), **$2,735 (range high).
👉 How to capitalize on Ethereum’s volatility
FAQ
Q: What’s driving Ethereum’s current rally?
A: Broader market recovery (BTC uptick) and technical breakout from a key resistance zone.
Q: Could ETH drop back to $2,300?
A: Yes, if it fails to hold $2,520. Monitor volume and Bitcoin’s trend for clues.
Q: Is Ethereum’s long-term outlook bullish?
A: Analysts cite cyclical patterns and structural resilience, suggesting a major rally may follow consolidation.
Q: How does ETH’s retracement compare to past cycles?
A: Similar to 2020 (60% drop before 800% surge), today’s 68% pullback may precede a strong uptrend.
ETH trades at $2,568 at press time, up 6.1% weekly.
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