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Analysts Eye $4,100 As ETH Reclaims Key Support

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Ethereum (ETH) has seen a significant 4.7% rebound over the past 24 hours, reclaiming an important support area. This performance has fueled bullish sentiment among some market watchers, who believe that the cryptocurrency will surpass the key resistance level in the coming days.

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Ethereum is regaining key support

Nearly a week ago, Ethereum jumped above $4,000 for the first time in nine months, approaching its March highs and the long-awaited $4,100 resistance level. However, the cryptocurrency’s rise was temporarily halted after the cryptocurrency market witnessed a major decline.

Earlier this week, ETH fell nearly 10%, falling below the $3,500 mark as Bitcoin fell to $95,000. After tracking, the second-largest cryptocurrency by market cap made a steady comeback, reclaiming the $3,800 support area on Wednesday afternoon.

ETH price then rose another 2% in the early hours of Thursday to trade above the $3,900 level again. While Ethereum has regained this key area, cryptocurrency analyst Karl Roenfeldt said male That the cryptocurrency once again traded above the upward support trend line, which it lost during the market correction.

Additionally, the altcoin king was retesting the six-day downtrend line on the four-hour chart, which will target a rise towards $4,000 after a successful breakout from the $3,940 mark.

Ethereum broke through this resistance level in the following hours, rising to a daily high of $3,985 before falling to $3,945. According to the analyst, stability above this level could push ETH price to $4,100 in the coming days.

ETH to $5000 soon?

According to some analysts, despite reclaiming the $3,900 area, Ethereum still needs to successfully turn another multi-year resistance into support. Analyst Alex Clay recently noted that Ethereum has retested the $9,350 level since 2021, unsuccessfully turning it into support over the past few years.

Ethereum has faced rejection at this resistance level on four different occasions. However, when ETH broke and held this level, it rose towards its all-time high (ATH) of $4,878 about three years ago.

Jelly crypto analyzer Suggested Ethereum is poised for massive moves as it recently broke out of a multi-year banner. ETH-based exchange-traded funds (ETFs) have seen a massive rally since the post-election rally.

As investors in Farside Data It shows that ETH ETFs saw inflows of over $500 million this week and over $1.3 billion since the beginning of this month. This indicates increased demand from institutional players, adding to the cryptocurrency’s momentum.

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Furthermore, the decentralized finance (DeFi) project, the World Financial Freedom Initiative (WLFI) backed by Donald Trump, acquired around $10 million in ETH yesterday. LeConchine said The WLFI wallet purchased 2,631 ETH at $3,801 per token.

For my generation, “it seems like the ETH season has just gotten institutional approval.” The analyst added that if Ethereum reclaims the $3,950 resistance level to support, there would be “very little in the way of reaching new all-time highs from here.”

He predicted that the price of Ethereum would reach $5,000 after the hack and that 2025 would be “the year of Ethereum’s comeback.” As of this writing, ETH is trading at $3,951, an increase of 4.7% on the daily time frame.

Ethereum performance on one-week chart. Source: ETHUSDT TradingView

Featured image from Unsplash.com, chart from TradingView.com

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