Ethereum (ETH) has started to climb a few levels after falling to the $3,100 support zone last week. The second-largest cryptocurrency is attempting to break out of its bearish trend, and some market watchers suggest it is poised for a massive run in 2025.
Key Ethereum levels to recover
With just one week left in 2024, several market observers have begun forecasting the potential performance of the crypto market for the coming year. Despite the recent setbacksSeveral analysts have predicted a remarkable performance for Ethereum in 2025.
The king of altcoins has had a difficult time turning the $4,000 level into support. After breaking above this level earlier this month, ETH has been rejected from this price range three times. Its last attempt came a week ago, when Ethereum soared to $4,100 before retreating 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 has fluctuated between $3,200 and $3,550, but failed to break above the upper zone of the price range over the past four days.
However, the cryptocurrency has broken out of its downtrend line and is attempting to regain the $3,500 support. A crypto analyst noted that ETH appears to have broken and retested its week-long downtrend after reclaiming the $3,400 support.
According to the publication, a “clear break” of this downtrend could lead the cryptocurrency to a retest of higher levels. Ali Martinez highlighted that ETH’s next major support zone was between the $3,032 and $3,132 price range, with 4.85 million ETH purchased by 3.69 million addresses.
Meanwhile, Ethereum’s next big resistance wall is between $3,640 and $3,740, where over 2 million addresses bought around 4.3 million ETH. For Martínez, “a sustained closure outside of this trading ban zone will determine the direction of the ETH trend.”
Will ETH continue 2021 performance?
Analyst Ted Pillows pointed He notes that “the first four months after the US elections are typically very bullish for ETH.” According to the chart, Ethereum posted massive gains in the first third of the year following the 2016 and 2020 US elections.
In 2017, Ethereum started the year with a 31.92% increase in the first month, while it recorded a 78.51% increase in January 2021. In both years, ETH reached its maximum monthly performance between March and April, with returns of 214% and 44%. in 2017 and 2021, respectively.
If Ethereum repeats this history performanceIts price could surpass its all-time high (ATH) of $4,878 in January and continue rising for the rest of the first quarter.
Cryptocurrency trader Immortal noted that Ethereum’s recent performance resembles its 2020-2021 price action. According to the chart, ETH saw a significant rise in early 2021 before consolidating in its new range. This was followed by a breakout and massive drop to retest the consolidation zone.
However, as ETH regained its breakout levels in 2021, the cryptocurrency continued to rise towards its previous ATH of $4,300, eventually reaching its current ATH at the end of the year.
The trader notes that ETH is try again consolidation range after last week’s decline, indicating that the cryptocurrency could soar in the coming weeks if it follows a similar path. At the time of writing, Ethereum is trading at $3,501, up 6.3% in the last 24 hours.
Fountain: NewsBTC.com
