Ethereum, the second-largest crypto by market capitalization, is striving to overcome a significant resistance zone, with hopes of mimicking Bitcoin's rally from 2020-2021.
Ethereum has demonstrated a notable 10% increase over the last week, climbing from $3,500 to approach the $3,900 resistance level. On Wednesday, it managed to surpass $3,800, a level not seen for six months, and continued its ascent to test the $3,900 resistance, last reached in early March.
By Thursday morning, ETH had transformed this pivotal zone into support, momentarily dipping to $3,860 before recovering. As it approaches its annual high of $4,093, investor sentiment surrounding the token's short-term performance remains strongly positive. Ethereum is currently revisiting a major multi-year resistance area, positioning itself for a possible new all-time high (ATH). Analyst Alex Clay emphasized the cryptocurrency's attempt to break "through the Key Resistance Zone on the weekly timeframe."
ETH has tested this crucial zone multiple times since 2021, encountering rejection from the upper boundary at $3,950 four times. Yet, Ethereum surpassed this benchmark in late 2021, achieving its ATH and maintaining it for nearly three months. Clay argues that if Ethereum succeeds in breaching this threshold and establishing it as support, it will likely "be the next to break through" and potentially surpass its ATH. He also predicts "no major pullback in the near time."
Similarly, crypto analyst Jelle has noted that if Ethereum exceeds its March high, "all bets are off." He contends that ETH, unlike BTC, might not undergo an extended consolidation period before achieving a new ATH.
Jelle further highlighted Ethereum's current pattern resembling Bitcoin's setup in July 2020. Back then, Bitcoin broke through a multi-year downtrend line, subsequently experiencing a massive 500% rally over ten months, reaching $60,000 by April 2021.
According to him, ETH has now breached a similar multi-year trendline, hinting at a possible strong rally in the upcoming months. He stated that investors might be "in for a treat if this plays out anything similar."
Additionally, Jelle noted that Ethereum began its ascent as Bitcoin surpassed its ATH, with ETH showing significant momentum as BTC traded nearly 100% above its prior cycle high.
He anticipates that "BTC & ETH climbing in tandem" could lead to ETH entering price discovery around ±$130,000. Consequently, Jelle projects a potential 150-200% surge, propelling ETH into the $10,000-$12,000 range in this cycle. Currently, Ethereum is trading at $3,905, marking a 2.4% increase on the daily timeframe.