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Breaking News: Trump Prepares To Allow Crypto Investments In $9 Trillion Retirement Market
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Breaking News: Trump Prepares To Allow Crypto Investments In $9 Trillion Retirement Market

Ethereum Breakout Is ‘Imminent’ Amid $3,850 Retest – Analyst Eyes $5,000 For This Quarter

Rubmar Garcia
Rubmar Garcia
2 hours ago
3 mins read
Ethereum, ETH, Crypto

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Created by industry experts and meticulously reviewed
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Ethereum (ETH) is attempting to break out of a crucial resistance level after recovering from last week’s lows. Some analysts suggested that the cryptocurrency is repeating past breakout playbooks, which could lead to a new high this quarter.

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Fourth Time’s The Charm?

On Thursday, Ethereum retested the $3,850 level after recording a 6.3% surge in the daily timeframe. The surge was fueled by news of President Donald Trump’s alleged plan to sign an executive order that would allow private equity, real estate, cryptocurrency, and other alternative assets investments in 401(k) plans.

The executive order would reportedly direct the Department of Labor (DOL) to revise the guidelines related to alternative asset investments in retirement plans, opening the doors to the $12.5 trillion industry.

Notably, the King of Altcoins has been trading between the $3,400-$3,800 price range since the mid-July breakout, attempting to break out from the last “major resistance” zone three times during this period.

Last week, ETH surged to a seven-month high of $3,941, briefly trading above the key resistance zone before retracing to its local range. The start-of-August correction saw the cryptocurrency retreat to the range lows, retesting the $3,350-$3,400 area as support.

Ethereum attempted to reclaim the range highs as this week started, trading in the $3,600-$3,700 mid-zone for the past three days. However, today’s pump saw the second-largest crypto surge past the $3,800 area and retest the $3,850 local resistance.

Following its recent performance, analyst Alex Clay considers that ETH’s correction “seems to be over.” He highlighted an 18-month descending broadening wedge on the daily chart, affirming that a “breakout is imminent” as the cryptocurrency neared the formation’s upper boundary.

Ethereum To Hit New Highs Soon

Analyst Ted Pillows affirmed that ETH is “just one bullish candle away from a major breakout,” highlighting the similarities between its May-June setup and its current one.

Following the May breakout, Ethereum traded within its local range, failing to break above the $2,700 resistance multiple times before its June bull and bear traps. Following the fake-out and retest of the lows, the cryptocurrency broke out of its range and hit a new yearly high in the following weeks.

ethereum
Ethereum’s May-June setup resembles current performance. Source: Ted Pillows on X

Similarly, ETH has been trading within its current range after the July breakout, as the analyst’s chart shows, retesting the local resistance before the late July bull trap. After the early August bear trap, the King of Altcoins is now retesting the $3,850-$3,900 area.

A breakout from this zone could propel the price above the $4,000 barrier if history repeats. Based on this, the analyst suggested that a $5,000 target is possible before the quarter ends.

Meanwhile, Rekt Capital highlighted that the Ethereum Dominance (ETHDOM) has surged above the 12% level in an uptrend for the first time in five years.

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He noted that the last time ETHDOM rallied to this area was in July 2020, when it consolidated between the 12% to 16% zone for months before breaking out in 2021. According to the analyst, ETHDOM is now challenging to transition into a similar consolidation phase.

As of this writing, ETH trades at $3,826 in the one-week chart, a 48% increase in the monthly timeframe.

Ethereum, eth, ethusdt
Ethereum’s performance in the one-week chart. Source: ETHUSDT on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
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Rubmar Garcia
Rubmar Garcia

Rubmar Garcia

Rubmar is a writer and translator who has been a crypto enthusiast for the past four years. Her goal as a writer is to create informative, complete, and easily understandable pieces accessible to those entering the crypto space. After learning about cryptocurrencies in 2019, Rubmar became curious about the world of possibilities the industry offered, quickly learning that financial freedom was at the palm of her hand with the developing technology.

Read more

From a young age, Rubmar was curious about how languages work, finding special interest in wordplay and the peculiarities of dialects. Her curiosity grew as she became an avid reader in her teenage years. She explored freedom and new words through her favorite books, which shaped her view of the world. Rubmar acquired the necessary skills for in-depth research and analytical thinking at university, where she studied Literature and Linguistics. Her studies have given her a sharp perspective on several topics and allowed her to turn every stone in her investigations.

In 2019, she first dipped her toes in the crypto industry when a friend introduced her to Bitcoin and cryptocurrencies, but it wasn’t until 2020 that she started to dive into the depth of the industry. As Rubmar began to understand the mechanics of the crypto sphere, she saw a new world yet to be explored.

At the beginning of her crypto voyage, she discovered a new system that allowed her to have control over her finances. As a young adult of the 21st century, Rubmar has faced the challenges of the traditional banking system and the restrictions of fiat money.

After the failure of her home country’s economy, the limitations of traditional finances became clear. The bureaucratic, outdated structure made her feel hopeless and powerless amid an aggressive and distorted system created by hyperinflation. However, learning about decentralization and self-custody opened a realm of opportunities. Cryptocurrencies allowed her to experience financial control for the first time and expand her financial education.

Moreover, the peculiar nature of the crypto community sparked Rubmar’s curiosity about the other layers of the industry. As a result, she found a particular interest in discovering the diverse perspectives of investors, market watchers, experts, and developers. Her attempts to better understand the crypto space made her realize the strong links of the community with other industries, enriching her perspective of the sector. As someone who spends most of her day online, Rubmar enjoys finding the points where the crypto world meets with her other passions and hobbies ­–or her favorite memes.

In her free time, she usually finds joy in different art forms. As a child, she enlisted in every extra-curricular activity in her hometown, including music classes, dancing, jewelry making, and the local chorus. Despite her many attempts to learn different instruments, Rubmar only knows how to play the xylophone, which she played for 7 years in her school’s marching band.

She also has a passion for learning new languages and cultures, having set the goal to learn another six languages ­– currently attempting to learn Italian and Korean. Scrapbooking, paper crafting, and bookbinding are her biggest interests outside of work, constantly taking classes and attending workshops to learn new techniques. The rest of her free time is spent stressing over football matches and transfer market news or feeding cats –hers or stray.

In summary, Rubmar seeks to present entertaining and educational pieces to be enjoyed by everybody, aiming to report on the latest news and offer a unique perspective while adding a meme or a pun whenever possible.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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