Ethereum (ETH) has started climbing some levels after falling to the $3,100 support area last week. The second largest cryptocurrency is trying to break out of its slump, with some market watchers suggesting it is poised for a big run in 2025.
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With only one week left in 2024, several market observers have begun to predict the performance of the crypto market for the next year. Despite the recent withdrawseveral analysts have predicted a spectacular performance for Ethereum in 2025.
The King of Altcoins is struggling to turn the $4,000 level into support. After breaking past this level earlier this month, ETH has been rejected from this price range three times. Its most recent attempt occurred a week ago when Ethereum soared to $4,100 before retreating by 7.3%.
As Bitcoin (BTC) fell to $92,000, the second largest crypto continued to the $3,100 support zone, reaching its lowest price in a month. Since then, Ethereum has crossed between $3,200 and $3,550 but failed to pass the upper zone of the price range for the last four days.
However, the cryptocurrency has broken out of its decline line and is trying to regain the $3,500 support. Crypto analyst was noted that ETH seems to have broken down and reconfirmed its one-week decline after reclaiming the $3,400 support.
According to the post, a “clean breakout” of this decline could lead the digital currency to a retest of higher levels. Ali Martinez marked that ETH's next major support area was between the $3,032 and $3,132 price range, with 4.85 million ETH bought by 3.69 million addresses.
Meanwhile, Ethereum's next big wall of protection is between $3,640 and $3,740, where more than 2 million addresses bought about 4.3 million ETH. To Martinez, “a stable close outside this non-trading zone will determine the direction of ETH's movement. “
Will ETH continue its 2021 performance?
Analyst Ted Pillows sharp noted that “the first four months after the US elections are often very positive for ETH. ” According to the chart, Ethereum recorded significant gains in the first third of the year after the 2016 and 2020 US elections.
In 2017, Ethereum started the year with an increase of 31.92% in the first month, while it recorded an increase of 78.51% in January 2021. In both years, ETH hit the highest level of monthly performance between March and April , seeing 214% and 44% returns. in 2017 and 2021, respectively.
If Ethereum repeats this history performanceits price could rise above the all-time high (ATH) of $4,878 in January and continue to climb through the rest of Q1.
Crypto trader Immortal noted that Ethereum's recent performance is similar to its price action for 2020-2021. According to the chart, ETH saw a big rally in early 2021 before consolidating in its new range. This was followed by a breakout and a major drop to reconfirm a consolidation zone.
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However, when ETH regained its breakout levels in 2021, the digital currency continued to move towards the previous ATH of $4,300, eventually hitting its current ATH at the end of the year.
The trader notes that ETH re-examination the consolidation zone after last week's fall, which indicates 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, an increase of 6.3% in the last 24 hours.
Featured image from Unsplash.com, Chart from TradingView.com
