This article is also available in Spanish.
Ethereum (ETH) has started to climb some levels after falling to the $3,100 support area last week. The second largest cryptocurrency is trying to break out of its stagnation, and some market watchers suggest that it is ready to be operational in 2025.
Related Reading
Ethereum Key Reclaim Levels
With only a week left in 2024, several market watchers have started predicting the likely performance of the crypto market in the coming year. Despite the recent pullback, several analysts have predicted a significant performance for Ethereum in 2025.
The king of Altcoins struggled to turn the $4,000 level into support. After crossing this level earlier this month, ETH has been rejected from this price range three times. Its latest attempt came last week when Ethereum rose to $4,100 before recovering 7.3%.
As Bitcoin (BTC) fell to $92,000, the second largest crypto continued its relief from the $3,100 support area, hitting its lowest value in a month. Since then, Ethereum has been hovering between $3,200 and $3,550 but has failed to break the high of the price range over the past four days.
However, the cryptocurrency has broken out of its downtrend line and is trying to recover the $3,500 support. A crypto analyst noted that ETH appears to have broken and retested its one-week low after retrieving the $3,400 support.
According to the post, the “clean explosion” of this decline may lead the cryptocurrency to a reevaluation of higher levels. Ali Martinez emphasized that the next major support area for ETH was between the price range of $3,032 and $3,132, with 4.85 million ETH bought by 3.69 million addresses.
Meanwhile, Ethereum’s next major wall of resistance is between $3,640 and $3,740, where more than 2 million addresses bought around 4.3 million ETH. For Martinez, “continuing closures outside of this non-trading area will determine the ETH trend indicator.”
Will ETH follow the performance of 2021?
Analyst Ted Pillows pointed out that “the first four months after the US election tend to be very strong for ETH.” According to the chart, Ethereum registered huge gains in the first third of the year after the 2016 and 2020 US elections.
In 2017, Ethereum started the year with an increase of 31.92% in the first month, while recording an explosion of 78.51% in January 2021. In both years, ETH reached its highest monthly performance between March and April, seeing 214% and 44% returns. in 2017 and 2021, respectively.
If Ethereum repeats this historical performance, its price may rise above the all-time high (ATH) of $4,878 in January and continue to rise during the rest of Q1.
Crypto trader Immortal noted that the recent performance of Ethereum is similar to the price action of 2020-2021. According to the chart, ETH saw a major rally in early 2021 before consolidating its new range. This was followed by a rash and a sharp drop in the area of ​​re-examination of the merger.
Related Reading
However, when ETH regained its exit levels in 2021, the cryptocurrency continued to rally to its previous ATH of $4,300, eventually hitting its current ATH by the end of the year.
The trader notes that ETH is retesting the consolidation range after last week’s dip, indicating that the cryptocurrency could rise in the coming weeks if it follows the same path. As of this writing, Ethereum is trading at $3,501, an increase of 6.3% in the last 24 hours.
Featured image from Unsplash.com, Chart from TradingView.com
Source link