Ethereum Breaks Above Resistance, $6K–$6.8K Rally Imminent?

ETH Builds Momentum for Breakout Toward $6K–$6.8K ATH

Ethereum (ETH) has now regained a strong bullish position on the technical charts as it has broken out of an extended resistance zone. The current structure of the token is an indication of a significant trend reversal following months of consolidation. According to analysts, with momentum expected to sustain, the price might resume its course to the next stage of recovery, in the range of $5,000-$5,500, in the coming weeks.

Analyst Gordon noted that the asset has officially surged out of a declining resistance trendline that has been playing since 2021. The fact that the retest was successful in the region of the breakout of about $3,800 will validate the occurrence of the breakout and that buyers are regaining control. Such setups are traditionally the beginning of long downtrends and can frequently result in long rallies. So long as the daily closes are at or above $3,800-$4000, ETH could have higher targets at between $4,800 and $5,500.

ETHUSD 1D CHART | SOURCE: X

Additionally, analyst CryptoBullet’s comparison between the current Ethereum setup and Bitcoin’s trend in 2024 is remarkable. The fractal resemblance indicates that ETH is experiencing a gradual version of BTC’s bull market, repeating some sequences of corrections and recovery. 

ETHUSD 1D CHART | SOURCE: X

Moreso, the token is approaching a consolidation zone after the October fall. There is a possibility that ETH will follow the upsurge that Bitcoin experienced, and could even hit higher levels above $6,000.

The token is currently exchanging at around $3,902, equivalent to 1.46% growth per day. However, there was a minor decrease in trading volume, as the price recovered with high lows signifying a positive sentiment. The level of support at $3,750 remains strong, creating a new accumulation base. Also, a breach above the mark of $3,950 could result in another wave of bullish activity that could challenge the primary resistance level of $4,000.

ETHUSD 1D CHART | SOURCE: CoinMarketCap

Ethereum Eyes New Highs

In addition, the wider crypto ecosystem is gaining momentum. Bitcoin's solidification is reinstating confidence in large assets, as liquidity flows into large-cap altcoins, reinforcing the revival of ETH. This is an indicator of a change in trader opinion and renewed risk appetite.

Moreover, Ethereum is growing due to increased layer-2 scaling and staking. These developments improve network stability and add to its long-term fundamentals. As a result, technical and on-chain metrics signal a move towards a long-term uptrend.

Notably, the crypto is in a technical confirmation amid growing market confidence. A second significant leg higher is expected. If bullish momentum stays above $4,000, the token could move toward $5,500 ATH soon. ETH trades at $3,902.84 at the time of reporting.