Ethereum (ETH) is making moves to recapture its vital resistance point after an impressive rally of almost 70% in the last month. The Altcoin king could be gearing up to reach new heights, but experts caution that a slight pullback could precede this.
Beginning the week with a yearly high, Ethereum has shown a 178% recovery from its April slump. The digital currency has witnessed a significant surge in recent weeks, following its price breakout and consolidation from May to June.
With the crypto market’s revival this month, spurred by Bitcoin’s ascend to new all-time highs (ATHs), ETH reclaimed the critical $3,000 threshold and continued its upward climb towards the crucial resistance of $3,800.
On Monday, Ethereum hit its yearly high of $3,860 before encountering resistance and retreating to the $3,600 zone. Analyst Ali Martinez suggests that the $3,835 resistance and the $3,490 support could be instrumental in determining Ethereum’s future progression.
Interestingly, the $3,825 region is the most formidable resistance, with 2.82 million addresses purchasing 1.48 million ETH at this level. Conquering this level could pave the way for a rally to the cycle high of $4,107.
Conversely, the $3,490 area, where 4.18 million addresses acquired 3.53 million ETH, remains the strongest support following the recent breakout. If the current levels fail to hold, a significant resistance rejection could trigger a price fall towards this zone.
Market observer Andrew Crypto predicts a possible Ethereum correction, stating that “a chart without a correction isn’t a healthy chart.” He suggests the cryptocurrency may retreat to its yearly opening (YO) area, between $3,300-$3,400, after facing rejection from the supply zone and major resistance. However, he anticipates a bounce and a retest of the $3,800 mark if a pullback occurs.
Analyst Crypto Bullet notes that Ethereum’s performance mirrors its price action from the last cycle. He points out a Descending Broadening Wedge pattern forming on ETH’s chart, eerily similar to its 2019-2020 setup. Despite a potential 10%-15% pullback to the $3,300-$3,400 area, he remains bullish and anticipates a breakout, eyeing a cycle top target between $8,000 and $10,000.
Merlijn The Trader also highlights similarities between Ethereum’s 2017 and 2025 rallies. According to him, the current cycle could repeat the 5,000% rally seen in 2016-2017, given the institutional backing.
As of this writing, ETH is trading at $3,698, marking a 21% increase over the past week.
