Ethereum: Analysts Eye $4,100 Target As ETH Reclaims Key Support Level
December 13 2024 - 4:30AM
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Ethereum (ETH) 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. Related Reading: Bitcoin Sees First Close Above
$100,000, But Is A Big Correction Coming? 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 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.
Ethereum broke above this resistance in the following hours,
surging to a daily high of $3,985 before retracing to $3,945. Per
the analyst, holding above this level could propel ETH’s price to
$4,100 in the coming days. ETH To $5,000 Soon? 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. 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.
Related Reading: Analyst Sounds The Alarm As Solana (SOL) Retests
$210, Rebound Or Retrace Next? 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.” As of this writing, ETH is trading
at $3,951, a 4.7% surge in the daily timeframe. Featured Image from
Unsplash.com, Chart from TradingView.com
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