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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 downtrend, with some market watchers suggesting it is poised for a massive rally in 2025.
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Key Ethereum levels that need to be restored
With only one week left in 2024, many market watchers have begun to predict the potential performance of the cryptocurrency market in the coming year. Despite the recent declines, many analysts are predicting a great performance for Ethereum in 2025.
The altcoin king has struggled to turn the $4,000 level into support. After surpassing this level earlier this month, ETH has been rejected from this price range three times. Its last attempt occurred a week ago when Ethereum price rose to $4,100 before falling 7.3%.
As Bitcoin (BTC) fell to $92,000, the second-largest cryptocurrency continued its free fall to the $3,100 support zone, hitting its lowest price in a month. Since then, Ethereum price has ranged between $3,200 and $3,550, but failed to cross the upper region of the price range over the past four days.
However, the cryptocurrency has broken through the downtrend line and is trying to reclaim the $3,500 support level. Cryptographic analyzer male ETH appears to have broken and retested its week-long downtrend after reclaiming the $3,400 support.
According to the post, a “clear breakout” of this downtrend could lead the cryptocurrency to retest higher levels. Ali Martinez Highlight The next big support area for ETH was between the $3,032 and $3,132 price range, with 4.85 million ETH purchased through 3.69 million addresses.
Meanwhile, Ethereum’s next big resistance wall is between $3,640 and $3,740, where more than 2 million addresses have bought about 4.3 million ETH. For Martinez, “a continued closure outside this no-trade zone will determine the direction of ETH’s trend.”
Will ETH follow 2021’s performance?
Analyst Ted Pillows He pointed out It is clear that “the first four months after the US elections are often very bullish for ETH.” According to the chart, Ethereum recorded massive gains in the first third of the year after the 2016 and 2020 US elections.
In 2017, Ethereum started the year with a 31.92% increase in the first month, while recording a 78.51% rise in January 2021. In both years, Ethereum reached its peak monthly performance between March and April, seeing returns of 214% and 44%. In 2017 and 2021, respectively.
If Ethereum repeats this historic performance, its price could rise above its all-time high (ATH) of $4,878 in January and continue rising through the rest of the first quarter.
Cryptocurrency trader Immortal noted that Ethereum’s recent performance resembles the price action of 2020-2021. According to the chart, ETH saw a significant rally in early 2021 before consolidating into its new range. This was followed by a breakout and significant decline to retest the consolidation area.
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However, when ETH regained its breakout levels in 2021, the cryptocurrency continued its rise towards the previous ATH of $4,300, eventually reaching the current ATH at the end of the year.
The trader notes that ETH is retesting its consolidation range after last week’s decline, suggesting that the cryptocurrency could rally in the coming weeks if it follows a similar path. As of this writing, Ethereum is trading at $3,501, an increase of 6.3% over the past 24 hours.
Featured image from Unsplash.com, chart from TradingView.com