The crypto market has kicked off October spectacularly with a remarkable recovery. Ethereum (ETH) is now attempting to consolidate the $4.500 support level, a crucial step that finally appears closer after nearly two weeks of fluctuation. Some analysts predict that a break above this key level could lay the foundation for an impressive 50% increase in the fourth quarter.
After a 17% surge from last week's lows, Ethereum is once again testing a key price level. The cryptocurrency recovered this week from a recent market correction that had pushed its price to a multi-week low of $3.815. Since then, the "king of altcoins" has reclaimed the middle of its macro range and broken through a significant sell-off between $4.200 and $4.300.
Expert Ted Pillows points out that the next two major resistance levels that must be broken to establish a new all-time high are $4.500 and $4.750. Ali Martinez adds that the area around $4.505 is "one of the most important resistance levels for Ethereum," based on the UTXO Realized Price Distribution (URPD) metric. A rejection of this level could lead to a retest of the support at $4.250, with the risk of further price declines if ETH falls below that level.
Analysts have previously warned that a loss of this zone could open the door for a new downward movement to the lows in the macro range. Conversely, reclaiming resistance at $4.500 would pave the way for a challenge to the highs in the macro range, around $4.800, in the coming weeks. Market analyst Lluciano notes that ETH has been forming a triangle since early August. A breakout from this pattern could herald a rally to new highs above $5.000, stating, "Q4 is here, a new wave for ETH is near."
In addition, Titan or Crypto A weekly bullish flag formation has been noted on the ETH chart. According to this analyst, a breakout of the upside of this formation, around the $4.500 level, could propel the price up 50% towards $6.900.
After closing above $4.100 in September, analyst Rekt Capital confirmed that Ethereum may be developing a monthly bullish flag within this macro range. He emphasizes that the cryptocurrency needs to reclaim $4.200 on higher timeframes to further build on the foundation of this formation. A close below this level technically means that ETH is preparing for a bearish retest, despite the current rise, as it erodes the middle boundary of the macro range.
Nevertheless, Rekt Capital believes that "even though the monthly close wasn't particularly compelling, the price simply needs to close above $4.200 to turn the tide." He notes that the cryptocurrency exhibited a similar performance in late 2021 and in July of this year, closing above this level and then testing it again as support after breaking out. This technical cycle allowed it to recapture the $4.600 level and prepare for new highs.
"If ETH can close above the blue line soon and retest this level as support, there's a good chance a return to $4.600 is on the horizon," he concludes. At the time of writing, Ethereum is trading at $4.502, up 4,1% daily.
What is the current course of Ethereum and how does it compare to previous levels?
Ethereum is currently trading around $4.502, up 4,1% on a daily basis, showing the asset is attempting to overcome recent tax pressures.
Which crucial levels should Ethereum recapture?
The key levels to watch are $4.500 and $4.750, which act as resistance and are essential for a potential run-up to new all-time highs.
What are the risks of a pullback below $4.250?
A drop below $4.250 could herald a fresh downward move, causing ETH to test the lows of its macro range, amid concerns about deteriorating market sentiment.