Ethereum (ETH) has started to climb some levels after falling to the $3,100 support zone last week. The second largest digital currency is trying to break out of its downtrend, and some market watchers are suggesting that the digital currency will see significant growth in 2025.
Related reading
Ethereum key levels to recover
With only a week left in 2024, several market watchers have started predicting the potential performance of the crypto market for the coming year. Despite the recent retreatsSeveral analysts have predicted significant performance for Ethereum in 2025.
The king of altcoins has struggled to turn the $4,000 level into support. After crossing this level earlier this month, Ethereum has broken through this price range three times. Its last attempt came a week ago when Ethereum rose to $4,100 before retracing 7.3%.
As Bitcoin (BTC) fell to $92,000, the second largest crypto continued its free fall to the $3,100 support zone, hitting its lowest price in a month. Since then, Ethereum has fluctuated between $3,200 and $3,550, but has not been able to break through the higher end of the price range in the past four days.
However, the digital currency has broken out of its downtrend line and is trying to retake the $3,500 support. A cryptocurrency analyst pointed out Ethereum appears to have broken and retested its one-week downtrend after reclaiming the $3,400 support.
According to this post, a “clean break” of this downtrend could lead the cryptocurrency to retest higher levels. Ali Martinez is highlighted Ethereum's next major support zone was between $3,032 and $3,132, where 4.85 million ETH were bought by 3.69 million addresses.
Meanwhile, Ethereum's next big wall of resistance is between $3,640 and $3,740, where more than 2 million addresses bought about 4.3 million Ethereum. According to Martinez, “Continued closures outside of this no-trade zone determine the direction of ETH's trend.”
Will ETH Track 2021 Performance?
Analyst Ted Balsh pointed out “The first four months after the US election are often very bullish for ETH.” According to the chart, Ethereum recorded huge gains in the first third of the year following the 2016 and 2020 US elections.
In 2017, Ethereum started the year with a 31.92% gain in the first month, while January 2021 recorded a 78.51% gain. In both years, Ethereum reached its peak monthly performance between March and April, seeing returns of 214% and 44%. in 2017 and 2021 respectively.
If Ethereum repeats this history performanceThe price could rise above its all-time high (ATH) of $4,878 in January and continue to climb for the rest of the first quarter.
Crypto trader Immortal noted that Ethereum's recent performance is similar to its price in 2020-2021. According to the chart, ETH saw a significant rally in early 2021 before stabilizing in its new range. This was followed by a failure and a sharp drop in the restabilization zone of the experiment.
Related reading
However, when ETH retook its breakout levels in 2021, the cryptocurrency rallied towards its previous ATH of $4,300 and eventually reached its current ATH by the end of the year.
The trader mentions that it is ETH Retest A consolidation range after last week's drop, which suggests that the cryptocurrency could rise in the coming weeks if it follows a similar path. As of this writing, Ethereum is trading at $3,501, up 6.3% in the last 24 hours.
Featured image from Unsplash.com, chart from TradingView.com
