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Quick analysis of the situation
Ah, Ethereum—our beloved King of Altcoins—is back in the limelight, strutting its stuff like it owns the place. Just last week, it pulled off a jaw-dropping 30% leap, soaring to a multi-year high of $4,750. That’s just a whisker away from its all-time high of $4,848, achieved during the heady days of November 2021. If you’re feeling the excitement, you’re definitely not alone!
After a wobble at the beginning of the month, ETH has bounced back like a rubber band, with a delightful 40% recovery that has cryptocurrency enthusiasts rubbing their hands together. Last Friday, it burst through the crucial $4,000 barrier, pushing onwards and upwards, breaking into the $4,400-$4,500 range with a swagger that would make even the most seasoned traders take notice.
Currently, Ethereum is sandwiched somewhere between $4,600 and $4,750, aiming to tackle what could be described as the final boss of resistance—the daunting $4,800 mark. This moment is critical not just for its price action but for chartists everywhere sweating over their candlesticks.
Enter the analyst Rekt Capital—our cryptographic oracle if you will. He has noted that Ethereum has managed a multi-year resistance breakout, turning it into support after a rather strategic post-breakout retest earlier this month. The implication of this move? A potential jump into new all-time highs. But history, as they say, has a funny way of repeating itself.
In late 2021, Ethereum attempted to turn $4,631 into a comfy support level, only to be rejected in a dramatic fashion that led to an 80% retracement. Ouch. So, how ETH deals with the $4,631 area over the coming days will be pivotal. Will it show resilience, or are we playing a game of “hot potato” with these resistance levels?
Let’s get real for a moment: if Ethereum can hold that $4,630 mark right off the bat, that’s a resounding signal of strength. However, the analyst warns, previous trends suggest a tendency for a shallower rejection rather than an outright fail. Should ETH falter in its quest, we might see it tumble 18% down to the Macro Range lows near $3,762. Not exactly the sunny headlines we’re hoping for, right?
Adding fuel to the speculative fire, we’ve got the newly created Weekly CME gap—nestled snugly between $4,091 and $4,261—hinting that a return trip to the macro lows could be in order. Talk about a rollercoaster ride!
But let’s keep our chin up. Should Ethereum manage to reclaim that final major resistance level, there’s a clear path to a price discovery rally that could lead us above the illustrious $5,000 threshold. There are even whispers that if it turns the $4,800 barrier into steadfast support, we might find ourselves eyeing up the $5,200 and $6,400 levels in no time, according to some nifty metrics like MVRV Extreme Deviation Pricing Bands.
As of now, Ethereum is trading at $4,748, marking a dazzling 56% increase over the last month. That’s the kind of climb that makes it all worthwhile—until the next twist and turn in this ever-enthralling narrative hits us. Will it rise to conquer new heights, or will it face another setback? Only time will tell, and we’re all eagerly watching how this drama unfolds. Buckle up, crypto fans!
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Image(s) are provided by Unsplash and/or other free sources. They are illustrative and may not represent the content truly.
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Please, behave!