Amid the market corrections, Ethereum (ETH) has retested a key multi-year support level, suggesting that a bounce to $4,000 could be near. However, some market watchers noted that ETH has tapped an “interesting level” against Bitcoin, which could signal the time to celebrate is not here yet.
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Ethereum Holds Key Support Level
Over a week ago, the crypto market saw its biggest retrace in months, sending Bitcoin and most cryptocurrencies to monthly lows. Ethereum dropped to $2,120, hitting its lowest price range since the early August correction.
Since then, ETH has moved within the $2,600-$2,830 price range, struggling to turn the range’s upper level into support for the past week. Yesterday’s market pullback, seemingly fueled by Donald Trump’s latest tariffs on steel and aluminum, saw Ethereum drop below the $2,600 support, a key resistance level before the Q3 2024 breakout.
On Monday, the King of Altcoin reclaimed the recently lost support, trading above the $2,650 mark throughout the morning. Some market watchers noted that ETH remains in its “bounce or die” multi-year support.
Ethereum has been in an uptrend support since 2022, retesting this trendline four times before. Each retest has been followed by a rebound to a key horizontal level in the following weeks.
ETH faced resistance at the $1,900-$2,200 zone during the 2022 retests of the ascending trendline before breaking out. Meanwhile, the 2023 and 2024 rebounds saw ETH bounce from the uptrend support to face resistance at the $4,000-$4,100 levels.
Market observer and investor Ted Pillows noted that Ethereum held its uptrend support since May 2023 after the recent retest, which could indicate that a rebound is near. If the pattern repeats, the cryptocurrency could break past the $4,100 resistance level and aim for new highs soon.
ETH Price Action Resembles 2020-2021 Rally
Ted also pointed out that ETH’s recent “capitulation candle” looked like March 2020’s. He explained that Ethereum recorded a major dump that led investors to believe the altcoin’s rally was over.
However, the cryptocurrency bounced back, resulting in a “long-term structure breakout for Ethereum.” According to analyst Crypto Jelle, ETH currently trades in a multi-year ascending triangle, and the recent performance suggests that the next move “will be the real deal.”
He noted that Ethereum’s next attempt would be the fourth retest of the $4,000 mark this cycle, which could “be the charm” as the resistance level weakens. A breakout and reclaim of this key resistance would potentially lead to a retest of the $4,878 all-time high (ATH).
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Daan Crypto Trades highlighted that the ETH/BTC trading pair moved back to its 2016-2020 levels when it hovered between 0.023-0.036. The range’s upper zone served as a key resistance throughout these years, propelling ETH to ATH and local highs against BTC once turned into support.
The trader considers that ETH/BTC could sit within this level “for quite a while” and that “the time to get excited again is when this retakes 0.036 at the very minimum.”
As of this writing, Ethereum trades at $2,659, a 1.2% increase in the daily timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
