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On Wednesday, Bitcoin (BTC) achieved a remarkable milestone, reaching a new all-time high near the $110,000 mark. In contrast, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, experienced a more modest increase of 1.7% on the daily time frame.
Is A New Bull Run On The Horizon For Ethereum?
Currently, Ethereum is trading at approximately $2,575, which places it 49% below its previous peak of $4,878, reached during the last bullish cycle in 2021. But despite its current lag, Ethereum’s potential for recovery is gaining attention.
Market expert Ali Martinez recently highlighted on a social media post on X (formerly Twitter) that a breakout above the crucial resistance level of $2,588 could unlock significant gains for Ethereum, projecting an additional 16.5% increase toward $3,000 if this level is surpassed.
Interestingly, ETH has shown stronger monthly performance compared to Bitcoin, with a 56% surge over the past month compared to Bitcoin’s 23% gains, and if the current buying pressure witnessed in the market for the second largest cryptocurrency, Martinez’s analysis could take place in the coming weeks.
For the past weeks, Ethereum has been consolidating between the $2,400 and $2,590 range, struggling to convert the resistance at $2,588 into support. However, other market analysts are also optimistic about Ethereum’s price outlook.
$4,000 Target If Bullish Momentum Continues
Income Sharks, another market analyst, noted in a recent post that a new support level has emerged just under $2,400. This development could set the stage for a continued upward trend.
According to Income Sharks’ analysis shared on social media site X on Wednesday, the $2,390 support level has been maintained for the past month for ETH’s price, which bodes well for potential price recoveries.
The first target identified is $3,000, aligning with Martinez’s earlier projections. If buying pressure persists and the broader cryptocurrency market maintains its bullish momentum, there is potential for Ethereum to target the $4,000 mark. However, even with such movements, the altcoin would still be 22% below its all-time high.
In the coming days or weeks, it remains to be seen whether these scenarios will play out for ETH or if the broader cryptocurrency market will see a new correction following Bitcoin’s recent surge to a new all-time high.
If the latter scenario plays out, the next key support levels to watch are $2,390 and the altcoin’s head-and-shoulders pattern support on the hourly chart, which Martinez highlighted in his analysis, at $2,455.
Featured image from DALL-E, chart from TradingView.com
