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Ethereum Reclaims Key Support, Could $5,000 Be Next?
Ethereum (ETH) Sees 4.7% Recovery in 24 Hours
Ethereum has seen a significant 4.7% recovery in the last 24 hours, reclaiming a crucial support zone. This performance has fueled a bullish sentiment among some market watchers, who consider the cryptocurrency to break above a key resistance level in the coming days.
Ethereum Reclaims Key Support
Nearly a week ago, Ethereum jumped above $4,000 for the first time in nine months, nearing its march-high and the long-awaited $4,100 resistance level. However, the cryptocurrency’s rally was momentarily paused after the crypto market saw a significant pullback. Earlier this week, ETH retraced nearly 10%, dipping below the $3,500 mark as Bitcoin retraced to $95,000. After the retrace, the second-largest crypto by market capitalization has steadily climbed back, recovering the $3,800 support zone on Wednesday afternoon.
ETH’s Price Rises 2% in Early Hours of Thursday
ETH’s price then rose another 2% in the early hours of Thursday to trade above the $3,900 level again. As Ethereum reclaimed this key zone, Crypto analyst Carl Runefelt noted that the cryptocurrency was trading back above its ascending support trendline, which it had lost during the market correction. Additionally, the King of Altcoins was retesting a six-day downtrend line in the 4-hour chart, which would target a surge toward $4,000 after a successful breakout from the $3,940 mark.
Could ETH Reach $5,000?
According to some analysts, despite reclaiming the $3,900 zone, Ethereum still needs to turn another multi-year resistance into support successfully. Analyst Alex Clay recently pointed out that ETH has been retesting 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 rallied toward its all-time high (ATH) of $4,878 around three years ago.
ETH-Based Exchange-Traded Funds (ETFs) See Massive Surge
Crypto analyst Jelle suggested that Ethereum is preparing for massive moves as it recently broke out of a multi-year pennant. ETH-based Exchange-traded funds (ETFs) have seen a massive surge since the post-election rally. As Farside Investors data shows, ETH ETFs have seen over $500 million in inflows this week and over $1.3 billion since this month started. This signals increased demand from institutional players, adding to the cryptocurrency’s momentum.
Donald Trump-Backed DeFi Project Acquires $10 Million in ETH
Moreover, the Donald Trump-backed DeFi project World Liberty Financial Initiative (WLFI) acquired around $10 million in ETH yesterday. Lookonchain said the WLFI wallet bought 2,631 ETH at $3,801 per token. To Jelle, this "looks like ETH season just got the ‘go ahead’ nod from institutions." If Ethereum reclaims the $3,950 resistance into support, there will be "very little standing in the way of new all-time highs from here," the analyst added. He forecasted that Ethereum could hit $5,000 after breaking out and that 2025 will be a "comeback year for ETH."
Conclusion
Ethereum’s recent performance has sparked renewed optimism among market watchers, with some analysts predicting a possible surge to $5,000. The cryptocurrency’s ability to reclaim key support zones and break above resistance levels has fueled the bullish sentiment. As ETH-based Exchange-traded funds (ETFs) see massive inflows and institutional demand increases, the stage may be set for a significant move upward.
FAQs
Q: What is the current price of Ethereum?
A: As of this writing, Ethereum is trading at $3,951.
Q: What is the current trend line of Ethereum?
A: Ethereum is currently trading above its ascending support trendline, which it had lost during the market correction.
Q: What is the significance of the $3,900 resistance level?
A: The $3,900 resistance level is a key zone that Ethereum has reclaimed, which could potentially lead to a surge toward $4,000.
Q: What is the forecast for Ethereum’s price?
A: Some analysts predict that Ethereum could reach $5,000 after breaking out and holding the $3,950 resistance level.
