Ethereum (ETH) has surged 7.5% in the daily timeframe, breaking above a crucial resistance level for the first time in weeks. This bullish momentum has analysts predicting a potential retest of the range highs in the near future.
Ethereum Reclaims Critical Price Zone
On Wednesday, Ethereum demonstrated impressive strength:
- Jumped 7% from local lows
- Reached the $2,550 resistance level
- Hit a two-week high at $2,585
The cryptocurrency had been trading between $2,400-$2,800 since early May but temporarily lost this range after failing to hold the $2,550 support** two weeks ago. Today's recovery coincides with Bitcoin's rise to **$109,600, fueling bullish sentiment across crypto markets.
Key Levels to Monitor
According to prominent trader Daan Crypto Trades:
- Bulls must defend $2,520 to confirm this isn't a false breakout
- Failure to hold this level could send ETH back to range lows
Major levels remain:
- Support: $2,310
- Resistance: $2,735
Merlijn The Trader observed Ethereum's remarkably clean technical patterns:
- Consistently respected support levels
- Formed one of the cleanest breakouts in recent history
- Completed a three-month ascending triangle
- Currently targeting $2,700 resistance
👉 Discover how Ethereum's technical patterns compare to previous bull cycles
Is Ethereum Repeating Its All-Time High Setup?
Merlijn identifies a fascinating two-year cycle pattern in ETH's price action:
- Base Formation Phase (2 years)
- Retest Phase (rejection and retest of base lows)
- Liftoff Phase (breakout to new highs)
The 2020-2022 cycle saw ETH rocket from $100** to its **$4,878 ATH. This time, the launchpad begins at $1,500 – not a dip, but a springboard for potential parabolic growth.
Analyst Kaleo notes striking similarities between current market structure and the 2020 cycle:
- In December 2020, BTC hit new ATH while ETH was 60% below its previous highs
- ETH subsequently gained 800%, outperforming BTC's 250% surge
- Current cycle shows 68% retracement from ETH's ATH while BTC makes new highs
"History suggests the bottom for ETH is in. Up only from here," Kaleo concluded.
Ethereum Price Analysis: Current Status
At time of writing:
- Price: $2,568
- Weekly gain: 6.1%
- Market sentiment: Bullish
👉 Learn how to capitalize on Ethereum's breakout opportunities
FAQ: Your Ethereum Questions Answered
Q: What's the next resistance level for Ethereum?
A: The immediate target is $2,700**, followed by **$2,735. A clean break above these could pave the way for $3,000.
Q: How does Ethereum's current performance compare to previous cycles?
A: The current setup mirrors 2020 patterns where ETH significantly outperformed BTC after initial underperformance.
Q: What are the key support levels to watch?
A: Critical supports include $2,520**, **$2,400, and $2,310. Holding these levels maintains bullish structure.
Q: Could Ethereum reach new all-time highs this cycle?
A: If historical patterns repeat, ETH could significantly exceed its previous $4,878 ATH, though timing remains uncertain.
Q: What technical indicators suggest bullish momentum?
A: The ascending triangle breakout, higher lows formation, and bullish MACD crossover all point to continued upside potential.
Q: How does Bitcoin's performance affect Ethereum?
A: While correlated, ETH often shows independent strength later in cycles, potentially outperforming BTC as it did in 2021.
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