As the crypto market kicks off October with a remarkable recovery, Ethereum (ETH) is attempting to turn the $4,500 level into support after nearly two weeks. Some analysts forecast that a breakout from this crucial area could set the stage for a massive 50% rally in Q4.
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Ethereum Retests Next Major Resistance
Ethereum has bounced 17% from last weekโs lows and is retesting the next crucial level to reclaim. The cryptocurrency started this week by recovering from the recent market correction, which sent its price to a multi-week low of $3,815.
Since then, the King of Altcoins has reclaimed the mid-zone of its macro range and broken past a major sell wall located around the $4,200-$4,300 levels. Amid this performance, market watcher Ted Pillows highlighted that the next two major resistance levels to reclaim before a new all-time high (ATH) are $4,500 and $4,750.
Similarly, Ali Martinez detailed that the $4,505 area is โone of the most important resistance levels to watch for Ethereum,โ according to the UTXO Realized Price Distribution (URPD) metric. A rejection from this major level could lead to a retest of the $4,250 support, and potentially risk a new price drop if ETH breaks below it.
Previously, some analysts cautioned that losing this area could open the gates for a fresh breakdown toward the macro range lows.ย On the contrary, reclaiming the $4,500 resistance would set the base for a challenge of the macro range highs, around the $4,800 level, in the coming weeks.
Market watcher Lluciano pointed out that ETH appears to be forming a triangle formation since early August. He suggested that breaking out of this pattern could kick off a rally toward a new high above the $5,000 barrier, affirming, โQ4 is here, ETH new wave is imminent.โ
Meanwhile, Titan of Crypto highlighted a weekly bull flag pattern forming on ETHโs chart. According to the analyst, a breakout from the formationโs upper boundary, around the $4,500 area, could send the price into a 50% rally toward the $6,900 mark.
ETHโs Weekly Close Could โTurn It All Aroundโ
After closing September above the $4,100 area, analyst Rekt Capital affirmed that Ethereum is potentially developing a Monthly Bull Flag within this macro range. He explained that the cryptocurrency must reclaim the $4,200 in the higher timeframes to continue building on the formationโs base.
Notably, closing the month below this level technically means ETHโs price is positioning for a bearish retest despite the current bounce, the analyst detailed, as it represents the mid-zone of the macro range.
Nonetheless, Rekt Capital considers that โeven though the Monthly Close wasnโt very appealing, price just needs to Weekly Close above the $4.2k mid-range to turn it all around.โ
He noted that the cryptocurrency displayed a similar performance in late 2021 and this past July, weekly closing above this level and post-breakout retesting it as support. This technical sequence enabled the price to reclaim the $4,600 area and position itself for new highs.
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โIf ETH can soon Weekly Close above blue and retest it back into support, then thereโs a good chance for a revisit to $4.6k being on the cards in the future,โ he concluded.
As of this writing, Ethereum is trading at $4,502, a 4.1% increase in the daily timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
