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Ethereum (ETH) price is finally moving after a week of sideways movement. Over the past hour, the second-largest cryptocurrency saw a 5% increase to retest the key $3,200 level. Some market observers believe ETH is poised to hit Q1 highs and kickstart the new season.
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Ethereum Retests Key Support Level
Ethereum has been heavily criticized for its performance relative to Bitcoin (BTC), with investors concerned that ETH could reach new highs this cycle. ETH price action has been moving sideways as the flagship crypto continues its price discovery mode.
On Thursday morning, BTC approached the $100,000 mark after hitting its latest all-time high (ATH) above $98,000, while ETH continued to hover in the mid-zone of its range. price over a week from $3,000 to $3,200.
However, Ethereum saw a remarkable 5% rise to trade above the $3,200 mark in the last hour. The second-largest cryptocurrency surpassed $3,200 a week ago for the first time in over three months, hitting the $3,400 mark before retracing 5%.
Over the past week, ETH attempted to reclaim the $3,200 resistance as support but failed to do so twice. Today, the cryptocurrency’s rise has propelled its price past key resistance near the mid-$3,300 area, reigniting bullish sentiment towards Ethereum.
Crypto analyst Yapper claimed that $3,200 is “the next big breakout” for Ethereum, as it was a major rejection point last week. The analyst highlighted that after ETH’s consolidation, the next step is a retest of this level, which could see the cryptocurrency reach the $3,500 mark if successfully reclaimed.
However, if this resistance does not turn into support, ETH price could likely lose the $3,000-$3,100 support and approach the $2,600 level, a major resistance ahead of this month’s breakout – here, before trying to reach $3,500.
ETH breakout to kick off Altseason
Crypto analyst Rekt Capital noted that ETH is breaking out of a short-term bull flag today. According to the post, the altcoin king broke out of a three-week bull flag formation after surpassing $3,200. A confirmation of the breakout “would see ETH revisit the $3,700 above,” the analyst predicted.
Likewise, crypto analyst Zayk pointed out that the cryptocurrency displayed a two-week bullish pennant formation within a 4-hour time frame. A successful breakout of the uptrend above the $3,200 mark could target a 15% upside to $3,700.
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Crypto trader Daan said investors should wait and see if Ethereum’s current momentum continues. However, he sees the next push for ETH/BTC as “probably getting some legs and going for some proper relief.”
This trend could see the ETH/BTC trading pair return towards the 0.04 mark, which it was trading at two weeks ago. The move would show a 20% increase from current levels, which “should absolutely depress the overall altcoin market and reduce BTC dominance by a decent amount.”
At the time of writing, ETH price is holding above $3,350, trading 2% below last week’s high.
Featured image from Unsplash.com, chart from TradingView.com
