As the crypto market recovers from its late September revision, Ethereum (ETH) is looking to reclaim its critical $4,200 area. Some analysts have confirmed that Altcoin’s bounce indicates that new legs could rise in the coming weeks.
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Ethereum regains $4,000
On Monday, Ethereum continued to recover from the recent market pullback, surged by nearly 6% from Sunday’s low to key barriers. Last week, King of Altcoins recorded a sharp drop below the $4,000 level for the first time since early August, hitting an eight-week low of $3,815 on Thursday afternoon.
Over the weekend, cryptocurrency regained its $4,000 barrier before it surged to a key $4,100 mark on Sunday afternoon. This level has served as a strong resistance throughout the past two years, representing the previous highs and key bounce area of the cycle during the Q3 rally. It also marks the lower limit for the local $4,100-4,800 range.
Market Watcher Daan Crypto Trades noted that weekly candles on ETH’s charts were closed beyond this level after “solid efforts by the Bulls and late Sunday pushes.” He added that it is important to keep this area in a higher time frame and target the height of the range.
In the daily time frame, traders think that Ethereum “not the worst look.” Recent recalls show clear negation of the range breakdown and continued potential recovery. Dern also suggested that cryptocurrencies could “take one out of BTC’s playbook” and prepare for massive new legs following integration and departures in scope.
Similarly, Bluntz believes that ETH’s Wave 4 appears to be “up feet” in the daily time frame. However, analysts believe that the next best (ATH) breakout is not as “sensational” as many believe, suggesting the $5,500 area as a major target.
Are the next legs of ETH two weeks apart?
Multiple market watchers highlight the potential power of the 3 (PO3) setup on Ethereum charts, indicating that the recent pullback is part of the operation that is part of the second phase, indicating that the cryptocurrency is ready for expansion in the third phase.
Meanwhile, Trader The Trader confirmed that Ethereum is showing similar setups ahead of the May and July rally. At the time, ETH broke from local range during liquidity grabs, sending relative strength index (RSI) indicators into oversold territory.
“This is the exact setup that created all the violent reversals. Strong hands know that. Weak hands are folded,” the trader asserted. Additionally, he noted that cryptocurrency may be repeating the timeline of the second quarter script.
According to the Post, Ethereum saw a 66-day integration between Maybreakout and the next pump in July. During this period, the second-largest cryptocurrency saw counterfeiting of prices under the 45-day mark area before it broke after 20 days.
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Last week’s sub-local range revisions occur 46 days after the accumulation period, suggesting that new breakouts and legs could rise in the first half of October. “We’re on the 51st day. The longer the squeeze… the more intense the explosion,” Merlin said.
Nevertheless, analyst Ted Pillows added that for more benefits, ETH will need to collect the $4,250 area, which has a strong selling barrier, up to the $4,320 level. If this area is not regained, the cryptocurrency risks him to retest support from $3,600 to $3,800.
At the time of writing, Ethereum is trading at $4,172, an increase in daily time frame by 3.5%.
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