Ethereum Ready to Return to the $3,800 Level

Ethereum (ETH) is approaching a critical juncture after an impressive 70% surge over the past month. Analysts are divided: some anticipate new highs soon, while others expect an inevitable correction before further gains.

Key Resistance and Support Levels

This week, ETH reached a yearly high of $3,860 — a 178% increase from April's lows. However, it later corrected to $3,600. Analyst Ali Martinez highlights two important levels:

• Resistance: $3,835 — where 2.82 million addresses acquired 1.48 million ETH

• Support: $3,490 — where 4.18 million addresses bought 3.53 million ETH

Breaking through resistance could pave the way for testing the cycle high of $4,107, while falling below support may lead to a 15% decline.

Potential Scenarios

Analyst Andrew Crypto warns: “A chart without corrections is an unhealthy chart.” He forecasts a possible pullback to the $3,300–$3,400 range, followed by a retest of $3,800.

Crypto Bullet draws parallels with the 2019–2020 market, when ETH formed a similar descending broadening wedge. In his view, the current breakout could trigger a rally toward $8,000–$10,000, though a 10–15% correction may come first.

Historical Parallels

Trader Merlijn points to striking similarities with ETH’s 2017 performance:

• The same price structure

• Similar false breakouts

• A comparable breakout pattern

In 2017, after two resistance tests, ETH gained 5,000%. The analyst believes that renewed interest from institutional investors could lead to a similar outcome.

At the time of publication, ETH is trading at $3,698, showing a 21% weekly gain. The market holds its breath, awaiting either a decisive breakout or a correction.

See also: "Cardano Cryptocurrency Drops 10% Amid Bearish Trading and Pullback"

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