Ethereum (ETH) is once again testing the crucial $3,800 resistance level after a strong 70% rally in recent weeks, sparking optimism among analysts who believe a breakout could send the King of Altcoins soaring to new heights.
ETH began the week on a bullish note, hitting a yearly high of $3,860 before pulling back to around $3,698 at the time of writing. This performance follows a significant recovery from its April lows, where Ethereum gained over 178%, fueled by Bitcoin’s march to new all-time highs and broader market strength.
Resistance at $3,800, Support at $3,490: The Battle Lines Drawn
According to analyst Ali Martinez, the $3,835 resistance level is the most formidable barrier for ETH in the short term. Data shows that 2.82 million addresses previously bought 1.48 million ETH at this level. Reclaiming it could set Ethereum on a path toward its cycle high of $4,107.
Conversely, if the bulls fail to hold the line, a correction could drive the price back toward the $3,490 support area, where over 4.18 million addresses acquired 3.53 million ETH, indicating strong buying interest.
Correction Ahead? Analysts Weigh In
Prominent market analyst Andrew Crypto warned that a short-term pullback could be imminent, stating, “A chart without a correction isn’t a healthy chart.” He believes ETH could revisit its yearly opening area between $3,300–$3,400 before any renewed rally.
Despite the risk of a correction, Crypto Bullet, another respected analyst, remains bullish. He highlighted that Ethereum’s current price structure resembles a Descending Broadening Wedge, similar to its setup during the 2019–2020 cycle. He believes ETH is now testing this pattern’s resistance for the third time, which could lead to a breakout with price targets ranging between $8,000 and $10,000.
History Repeats Itself? 2017 Patterns Mirror 2025
Adding to the bullish sentiment, trader Merlijn The Trader pointed out striking similarities between ETH’s current trajectory and its rally in 2017. “Same range. Same fakeout. Same breakout,” he said, noting that ETH retested resistance twice before embarking on a 5,000% rally back then. According to him, institutional interest in 2025 could fuel a similar move.
As ETH consolidates above $3,600, the altcoin market continues to show signs of strength. Many traders are eyeing a potential flip of the $3,800 level, which could be the catalyst for Ethereum’s next leg higher.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
