Ethereum (ETH) is poised to test key resistance, enabling a speculation Bitcoin (BTC) moved up so explosively throughout 2020 and 2021. Ethereum has seen ETH surge 10% in the past week, lifting from $3,500 to a challenge of the $3,900 resistance area not seen since March, following Bitcoin which recently topped $100,000.
Ethereum reached $3,800 on Wednesday, its highest point since last August. The cryptocurrency then retraced back to $3,860 and bounced to test $3,900 resistance. Market sentiment is now extremely bullish ahead of ETH’s yearly high of $4,093.
Ethereum Faces Key Resistance
A SMT Platinum is expected to fail, ship, and cause numerous other prices to trend upwards (or downwards) especially Ethereum, which also faces a significant multi year resistance zone that could break and signal a new all time high (ATH). Ethereum, according to analyst Alex Clay, is prying itself away from a key resistance on the weekly, which has been rejected four times in 2021.
But, like with any other currency, ETH rose briefly above this level in late 2021 until it topped its ATH. If Ethereum can move above $3,950 resistance and turn it into support, Clay believes it might have big run ahead.
Crypto analyst Jelle believes ETH current setup is comparable to Bitcoin’s breakout in July 2020 when BTC broke a multi year downtrend and went on to rally 500%. If ETH continues its upward trajectory, he says ETH could follow the same path to new all time highs over the next few months.
If this rally goes similarly as Bitcoin 2020 I’d expect ETH to end up in the $10k to $12k range (150 – 200% higher from current prices), Jelle says. ETH is now being sold at $3,905 as of Thursday, with the coin rising by 2.4% in a day. Ethereum’s performance aligns with that of Bitcoin on its historic surge, and investors could be looking at a nice upside if this trend continues in the months ahead.
