As Bitcoin finally breaks through the long-awaited $100,000 mark, Ethereum (ETH) is attempting to break through a key resistance area. The surge of the second-largest cryptocurrency has sparked optimism about its targets, with some believing it could mimic BTC's rally from 2020 to 2021.
Ethereum recovers to $3,900
Ethereum is the second-largest cryptocurrency by market capitalization, having risen 10% in the past week, climbing from the $3,500 mark to the $3,900 resistance level. On Wednesday, the king of altcoins broke the $3,800 mark for the first time in six months and continued to climb, re-testing the $3,900 resistance level, which has not been seen since early March.
Early Thursday morning, ETH turned this key area into a support level, briefly dropping to $3,860 before rising back to recent recovery levels. As the cryptocurrency approaches the annual high of $4,093, sentiment around the token's short-term performance has become extremely optimistic.
Ethereum is re-testing a massive multi-year resistance area that could allow ETH to reach new highs. Analyst Alex Clay stated that the cryptocurrency is trying to break through a 'key resistance area on the weekly timeframe.'
Since 2021, ETH has fallen below the key area five times, previously encountering resistance at the $3,950 resistance level on four occasions. However, Ethereum broke through this level at the end of 2021, reaching an all-time high (ATH) and maintaining that level for nearly three months.
Analysts point out that if the king of altcoins successfully breaks this level and turns it into support, it will become the next 'breakthrough' currency and break the historical highest price. Clay added that he believes 'there will not be a significant pullback in the near term.'
Similarly, cryptocurrency analyst Jelle stated that if Ethereum breaks through the March high, 'anything is possible,' indicating that the likelihood of ETH experiencing a lengthy consolidation period before reaching new highs like BTC is 'very low.'
Will ETH rise to $10,000?
Jelle also noted that Ethereum's current trend is similar to Bitcoin's trend in July 2020. According to the charts, Bitcoin broke through a multi-year downtrend in mid-2020, and then saw a massive 500% increase over ten months, reaching the $60,000 mark in April 2021.
The analyst pointed out that ETH broke through a multi-year trend line today, similar to BTC in 2020, which could trigger a similar rebound in the coming months, reaching new highs. He added that if a similar scenario occurs, investors 'will be in for a treat.'
In another article, he emphasized that when Bitcoin broke its historical high, Ethereum began to rise, and when BTC's trading price was nearly 100% higher than the previous cycle's peak, Ethereum entered a price discovery phase.
He believes that 'seeing a similar situation this time would be surprising. BTC and ETH rising in sync leads ETH into a price discovery phase, with prices around $130,000.'
Based on this, analysts believe that within this cycle, the price of the cryptocurrency could rise by 150-200%, reaching $10,000-12,000. As of the time of writing, ETH is trading at $3,905, up 2.4% daily.
