Ethereum (ETH) is attempting to bounce from the marketโs Q4 correction, retesting the $3,000 barrier once again. As we approach the end of November, some market observers have suggested that the end-of-year rally may still be possible in the coming weeks.
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Ethereum Eyes $3,000 Ahead Of Key Upgrade
On Wednesday, Ethereum experienced a 4.4% daily surge, retesting the $3,000 level for the first time in nearly a week. The cryptocurrency has been trading within the $2,680-$2,980 price range amid the latest market-wide correction, which also saw Bitcoin (BTC) lose some crucial support levels.
At the start of the week, the King of Altcoins broke above the $2,900 area, attempting to retest the next key resistance over the past two days but ultimately failing to reclaim it. Analyst Ted Pillows highlighted this performance, noting that ETH โtapped the $2,950-$3,000 zone again and got rejected.โ
Per the post, until Ethereum successfully reclaims this level, โthe chances of a new low are high.โ On the contrary, if the cryptocurrency breaks above this zone with strong volume in the coming days, investors could โexpect a rally towards the $3,400 level.โ
The analyst also suggested that the altcoin could see a remarkable recovery rally next week, driven by the upcoming Fusaka upgrade. As he explained, ETH soared around 50% after the networkโs Pectra upgrade in May.
As reported by NewsBTC, the upgrade introduced a series of improvements to increase transaction capacity, enhance efficiency, and reduce system stress. Following the implementation, the cryptocurrency rallied from the $1,800 level to the $2,700 area in a week, which was later followed by an 80% jump in Q3 to its latest all-time high (ATH) of $4,946.
Now, the Fusaka upgrade is the networkโs biggest update since The Merge and is expected to come on December 3, โto relieve one of the networkโs most pressing bottlenecks: data availability forย rollups,โ VanEck explained in October.
Based on this, Ted Pillows suggested that if ETH repeats its post-Pectra performance with the new upgrade, the altcoinโs price could soar above the $4,000 resistance in the next few weeks.
End-Of-Year Rally Underway?
Market watcher Merlijn The Trader also suggested that Ethereum could see another leg up soon, as it is โrepeating a textbook wave structureโ it has printed multiple times since hitting the bear market bottom in mid-2022.
โWave 1: Kicked off the cycle. Wave 2: Is shaking weak hands. wave 3: Where parabolas form,โ the trader explained on X, noting that ETH could be ending its corrective move and potentially see another rally in the coming weeks.
โThis pattern printed 3 times before. Each time, ETH went vertical. Now itโs flashing again,โ he stated. Similarly, Michaรซl van de Poppe highlighted Ethereumโs trading pair against Bitcoin, affirming that investors should keep an eye on the chart.
Notably, ETH is retesting a multi-month downtrend line resistance against BTC, and could โsee a strong breakout upwards in the coming weeks.โ โThis cycle is far from over,โ van de Poppe added.
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Meanwhile, Rekt Capital noted that Ethereum Dominance continues to occupy an area that served as a consolidation zone before the 2021 rally. โAs long as ETHDOM can maintain itself above 10.05% then it should be positioned for higher market dominance levels over time,โ the analyst concluded.
As of this writing, ETH trades at $3,023, a 2% increase in the weekly timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
