Ethereum (ETH) has recently shown signs of recovery after falling to the $3,100 support zone last week. Market watchers are suggesting that Ethereum may be gearing up for a significant rally in 2025. Despite facing struggles to turn the $4,000 level into support, analysts are optimistic about the cryptocurrency’s performance in the coming year.
One key level that Ethereum is attempting to reclaim is the $3,500 support. After hovering between $3,200 and $3,550, ETH is now trying to break past the higher end of this range. The cryptocurrency has broken out of its downtrend line and is showing signs of potential upward movement. Analysts believe that a breakout from this downtrend could lead Ethereum to retest higher levels.
Analyst Ted Pillows pointed out a historical trend where the first four months after U.S. elections are typically bullish for Ethereum. In 2017 and 2021, Ethereum saw significant gains in the first few months of the year, with peak performances in March and April. If Ethereum follows a similar pattern in 2025, its price could surpass its all-time high of $4,878 in January and continue to climb throughout the first quarter.
Crypto trader Immortal noted similarities between Ethereum’s current performance and its price action in 2020-2021. In early 2021, Ethereum experienced a rise followed by a consolidation phase before breaking out to reach its all-time high. The trader believes that if Ethereum continues to retest the consolidation range, it could see a significant surge in the coming weeks.
As of now, Ethereum is trading at $3,501 with a 6.3% increase in the last 24 hours. Analysts are closely monitoring Ethereum’s movements as it attempts to reclaim key levels and potentially embark on a significant rally in 2025. With support levels at around $3,032 to $3,132 and resistance levels at $3,640 to $3,740, market watchers are looking for a sustained close outside of these zones to determine the direction of Ethereum’s trend.
In conclusion, Ethereum is showing signs of recovery and potential for a bullish rally in 2025. Market analysts are optimistic about Ethereum’s performance, especially if it can break past key levels and continue on a similar trajectory as in previous years. Investors are keeping a close eye on Ethereum’s movements as it attempts to reclaim support levels and potentially reach new all-time highs in the coming months.
