Ethereum Targets $4,100 as Key Support Levels Hold Strong
Ethereum (ETH) has staged an impressive recovery, gaining 4.7% over the past 24 hours to reclaim a critical support zone. This upward momentum has sparked bullish expectations among analysts, with many eyeing a potential surge above the $4,100 resistance in the coming days.
Ethereum Reclaims Crucial Support Zone
Last week, Ethereum soared past $4,000 for the first time in nine months, inching closer to its $4,100 resistance level. However, the rally hit a pause as the broader crypto market experienced a sharp pullback, causing ETH to dip below $3,500.
After this 10% retracement, Ethereum began a steady recovery, reclaiming the $3,800 support level on Wednesday afternoon. By early Thursday, ETH climbed an additional 2%, surpassing $3,900. This rebound has been bolstered by its ascent above a key trendline, which was temporarily lost during the correction.
Crypto analyst Carl Runefelt highlighted that ETH retested its six-day downtrend line on the 4-hour chart. A breakout from the $3,940 resistance level set the stage for Ethereum to test $4,000 again. Within hours, ETH surpassed this threshold, reaching a daily high of $3,985 before a minor retracement to $3,945. Analysts agree that holding above this level could position Ethereum for a move toward $4,100 in the near term.
Can ETH Hit $5,000?
While Ethereum’s recovery above $3,900 has boosted optimism, the cryptocurrency still faces a significant multi-year resistance level. Analyst Alex Clay noted that ETH has struggled to convert the $4,350 zone into support since 2021. Historically, Ethereum has faced rejection at this level on four occasions, only rallying to its all-time high (ATH) of $4,878 after successfully flipping it into support.
Recent developments, however, signal growing momentum. Analyst Jelle pointed out that ETH has broken out of a multi-year pennant, setting the stage for significant price action. This bullish sentiment is echoed by rising institutional interest, as Ethereum-based exchange-traded funds (ETFs) have attracted over $1.3 billion in inflows this month alone, according to Farside Investors.
Additionally, the World Liberty Financial Initiative (WLFI), backed by Donald Trump, made headlines by acquiring $10 million worth of ETH at $3,801 per token. Such large-scale purchases, alongside institutional inflows, highlight Ethereum’s increasing appeal to major players.
Jelle suggests that Ethereum could hit $5,000 after breaking through key resistance levels. “ETH season seems to have received a green light from institutions,” he remarked, adding that 2025 could mark a significant comeback year for the cryptocurrency.
Conclusion: A Bullish Outlook for Ethereum
As of now, Ethereum is trading at $3,951, reflecting a 4.7% increase in the past 24 hours. Analysts remain optimistic that holding above the $3,950 resistance could pave the way for Ethereum to test new highs. With growing institutional demand and technical breakout patterns, the stage is set for ETH to target $4,100 in the short term and potentially $5,000 in the months ahead.
