As a seasoned researcher with over a decade of experience in the ever-evolving world of cryptocurrencies, I must say that Ethereum‘s recent performance has been intriguing. The 4.7% recovery in just 24 hours is a testament to its resilience and potential, reclaiming a crucial support zone.
Over the past day, Ethereum (ETH) has experienced a notable 4.7% increase and regained an important support area. This positive trend has sparked optimism among certain analysts, who anticipate ETH may surpass a significant resistance barrier within the next few days.
Ethereum Reclaims Key Support
About a week ago, I witnessed Ethereum soaring past $4,000 for the first time in nine months, edging closer to its March-high and the much-anticipated resistance level of $4,100. Yet, the cryptocurrency’s upward momentum was temporarily halted following a substantial pullback in the crypto market.
This past week, ETH experienced a significant drop of almost 10%, falling below the $3,500 barrier, while Bitcoin dipped to around $95,000. After this fall, Ethereum, the second-largest cryptocurrency by market value, has been gradually regaining ground and reclaiming its $3,800 support level in the late afternoon of Wednesday.
On Thursdays early hours, ETH’s price climbed another 2%, reaching levels above $3,900 once more. As Ethereum regained this significant area, crypto analyst Carl Runefelt observed that the digital currency was trading over its upward-sloping support trendline again – a level it had dropped below during the market downturn.
Furthermore, the Leading Cryptocurrency besides Bitcoin was attempting to break through a six-day resistance line in its 4-hour graph. If successful, this could potentially lead to a rise towards $4,000 after surpassing the $3,940 level.
In the ensuing period, Ethereum managed to break through its resistance, reaching a peak of $3,985 daily before slightly pulling back to $3,945. According to the analyst’s assessment, if it maintains above this level, Ethereum’s price might increase towards $4,100 in the near future.
ETH To $5,000 Soon?
Based on certain experts’ opinions, Ethereum regaining the $3,900 region is not enough; it must convert a long-standing resistance into a support level effectively in the future. Analyst Alex Clay has noted that Ethereum has repeatedly failed to transform the $9,350 threshold into a support level since 2021.
On four separate instances, Ethereum has been turned down by a specific resistance point. Yet, when Ethereum surpassed and sustained that level in the past, it led to a surge towards its peak price of approximately $4,878, which was attained about three years back.
According to crypto expert Jelle, Ethereum appears poised for significant growth after it surpassed a long-standing chart pattern known as a multi-year pennant. The interest in ETH-focused Exchange-Traded Funds (ETFs) has skyrocketed since the stock market rally following the recent election.
According to Farside Investors’ data, ETFs related to Ethereum (ETH) have received more than half a billion dollars in investments this week alone, and a total of over $1.3 billion since the start of this month. This trend suggests that institutional investors are showing heightened interest, which in turn bolsters the digital currency’s growth trajectory.
Additionally, it was reported that the DeFi initiative supported by Donald Trump, World Liberty Financial Initiative (WLFI), purchased approximately $10 million worth of Ethereum (ETH) the previous day. According to Lookonchain, the WLFI wallet made this purchase by acquiring 2,631 ETH at an average price of $3,801 per token.
To Jelle, it seems like “Ethereum’s surge towards new highs has received a green light from institutions.” If Ethereum manages to hold $3,950 as support instead of resistance, there won’t be much obstruction left for it to reach new record highs. The analyst further commented on this.
As a researcher, I predicted that Ethereum might reach an astounding $5,000 following its breakout, and I also suggested that 2025 could be a significant resurgence year for ETH. Currently, Ethereum is trading at around $3,951, marking a 4.7% increase in the daily market.
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2024-12-13 12:40