Ethereum Attempts Breakout as Bitcoin Hits $100,000 Milestone
With Bitcoin surpassing the $100,000 mark, Ethereum (ETH) is making moves to break out from a key resistance zone. The second-largest cryptocurrency’s recent rally has sparked optimism about its potential targets, with some experts drawing parallels to Bitcoin’s impressive performance in 2020 and 2021.
Ethereum Reclaims $3,900 Resistance
Ethereum, currently the second-largest cryptocurrency by market capitalization, has experienced a significant 10% surge in the past week. The price has risen from around $3,500 to test the $3,900 resistance level. Breaking through this barrier, ETH has reclaimed levels not seen since early March, reaching a six-month high.
As ETH hovers near its yearly peak of $4,093, market sentiment has turned notably bullish regarding its short-term performance. Analysts suggest that Ethereum is now challenging a major multi-year resistance zone, potentially setting the stage for a new all-time high.
Notably, ETH has tested this key zone multiple times since 2021, facing rejection at the upper resistance around $3,950. However, in late 2021, Ethereum managed to break past this level and sustain its ATH for nearly three months. Analysts like Alex Clay believe that if ETH can successfully break above this level and establish it as support, the path to a new all-time high will be clear.
Potential Rally Towards $10,000?
Analysts have drawn comparisons between Ethereum’s current setup and Bitcoin’s trajectory in July 2020. Just as Bitcoin broke a multi-year downtrend line in 2020, ETH has now breached a similar trendline, sparking anticipation of a significant rally in the coming months.
According to experts, if Ethereum follows a path similar to Bitcoin’s rally, investors could be in for a substantial gain. Some predict a 150-200% rally for ETH, potentially pushing the cryptocurrency towards the $10,000-$12,000 range in this cycle. As of the latest data, Ethereum is trading at $3,905, showing a 2.4% increase on the daily timeframe.
Conclusion
As Ethereum continues its upward trajectory and Bitcoin sets new milestones, the cryptocurrency market is brimming with excitement and anticipation. With ETH challenging key resistance levels and eyeing a potential rally towards $10,000, investors are closely watching the market for further developments.
Featured Image from Unsplash.com, Chart from TradingView.com