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As Bitcoin finally breaks the long-awaited $100,000 mark, Ethereum (ETH) is attempting to break out of a key resistance zone. The second-largest crypto rally has fueled optimism about its goals, with some suggesting it could mimic the BTC rally of 2020-2021.
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Ethereum recovers $3,900
Ethereum, the second largest cryptocurrency by market capitalization, saw a 10% rise last week from the $3,500 mark to the $3,900 resistance. On Wednesday, the king of Altcoins surpassed the $3,800 level for the first time in six months and continued to climb to retest the $3,900 resistance, not seen since early March.
In the early hours of Thursday, ETH turned this key area into support, briefly falling to $3,860 before returning to the recently recovered level. As the cryptocurrency nears its yearly high of $4,093, sentiment around the token’s near-term performance has become extremely optimistic.
Ethereum is retesting a huge multi-year resistance zone, which could send ETH to a new ATH. According to analyst Alex Clay, the cryptocurrency is attempting to “break through the key resistance zone on a weekly time frame.”
ETH has left the key zone five times since 2021, facing rejection from upper resistance at $3,950 four times before. However, Ethereum surpassed this level in late 2021, when it reached its all-time high (ATH) and held above it for almost three months.
The analyst noted that if the king of Altcoins manages to break above this level and turn it into support, he will be the next to “break through” and break its ATH. Clay added that he doesn’t see “any major setbacks in the near future.”
Similarly, crypto analyst Jelle said that if Ethereum breaks the March high, “all bets are off”, suggesting that the chances of ETH taking a long period of consolidation before a new ATH like BTC were “very weak.”
Will ETH Rally Toward $10,000?
Jelle also noted that Ethereum’s current setup mimicked that of Bitcoin in July 2020. According to the chart, Bitcoin broke a multi-year downtrend line in mid-2020, followed by a massive 500% rally on 10 months towards the $60,000 mark in April 2021.
The analyst noted that ETH broke the multi-year trendline today, like BTC did in 2020, which could spark a similar rally to new highs over the coming months. He added that investors would be “spoiled if it happened in the same way”.
In another article, he pointed out that Ethereum began to rally when Bitcoin surpassed its ATH and entered price discovery when BTC traded almost 100% above its previous cycle high .
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He believes it would be surprising to “see things turn out the same way this time.” BTC and ETH are climbing in tandem, leading ETH to discover prices around ±$130,000.
Based on this, the analyst believes that a 150-200% rise towards the $10,000-$12,000 price range for the cryptocurrency is possible for this cycle. At the time of writing, ETH is trading at $3,905, an increase of 2.4% on the daily time frame.
Featured image from Unsplash.com, chart from TradingView.com
