After a recent surge in the market, the major cryptocurrencies have exhibited impressive performance. Bitcoin is trading above the $64,000 threshold, while Ethereum (ETH) has climbed 9% over the past week, stabilizing above a significant support level.
Despite the prevailing bullish outlook, some cryptocurrency investors remain cautious regarding ETH’s performance as the second-largest cryptocurrency approaches a critical resistance level.
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Ethereum Settles Above $2,600
Ethereum experienced a 13% price increase over the last week following the US Federal Reserve’s decision to lower interest rates by 50 basis points (bps). This bullish trend boosted ETH’s price to levels not witnessed in a month, generating positive sentiment among numerous investors.
Throughout the weekend, the “King of Altcoins” rallied from the $2,300 support area to $2,500 and subsequently reclaimed the $2,600 resistance level as the week began. Since then, the cryptocurrency has oscillated between the $2,600 and $2,684 price range, briefly dipping below the crucial support level on Wednesday afternoon.
However, Ethereum faced selling pressure today after recovering from its recent drop to $2,500. Market analyst Crypto Yapper observed that ETH has been “encountering significant resistance on the Daily chart,” as it has struggled to break above the $2,650 mark since Tuesday.
This situation has raised concerns among some investors, who believe that failing to surpass this level could impede the cryptocurrency’s upward momentum and push the price back towards previous support zones.
Nevertheless, Ethereum’s price has increased by 1% in the last hour, trading above $2,650. As of now, ETH is priced at $2,660, reflecting a 2.1% increase for the day and a 9.3% increase over the week.
Will ETH Reach New Peaks in October?
Crypto Trader Daan emphasized that Ethereum’s price has formed a higher low (HL) but has yet to establish a higher high (HH). The trader remarked that an HH would occur above the $2,820 level, which was lost over a month back, signaling a potential trend reversal for the cryptocurrency.
This level aligns with the horizontal point that initiated the February-March surge to $4,090 following the breakout. Furthermore, it coincides with the Daily 200 Exponential Moving Average (EMA) in that region, making it “a key level to monitor.”
Breaking above this level could further drive ETH’s price towards the $3,000 resistance point. Julien Bittel, Head of Macro Research at Global Macro Investor (GMI), noted that Ethereum’s chart is “resembling a 2023 redux.”
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According to the Chart, the current market structure of the cryptocurrency closely mirrors its movements from 2023. If ETH’s previous bullish trend repeats, we could see the cryptocurrency’s price breakout and potentially reach a new all-time high (ATH) by mid to late October.
Moreover, the chart indicates that if it adheres to the same bullish trajectory, Ethereum’s price could reach between $10,000 and $20,000 by Q1 2025, implying a 669% increase from its current price and a 300% rise from its ATH.
Featured Image from Unsplash.com, Chart from TradingView.com
