Ethereum Aims for “Final Boss” Level, But Analyst Says Price Discovery Run Depends on Weekly Close

As the price of Ethereum (ETH) approaches its 2021 all-time high (ATH), the cryptocurrency is making an effort to regain a significant region. But according to an analyst, the performance this week will be crucial for the eagerly anticipated price discovery surge.

Ethereum Eyes Last Major Resistance

Ethereum’s performance over the past week has been impressive; on Wednesday afternoon, it jumped approximately 30% to a multi-year high of $4,750, just 3.3% away from its all-time high of $4,848, which was set in November 2021.

Notably, after a 40% decline at the beginning of the month, the King of Altcoins last Friday broke out of its local range and regained the critical $4,000 barrier. ETH has been rising ever since, regaining the $4,400–$4,500 range on Tuesday.

Throughout the day, the cryptocurrency has been bouncing between $4,600 and $4,750. It is trying to break out of this range to take on maybe “the final boss” of resistance, which is located around $4,800.

When discussing ETH’s recent performance, analyst Rekt Capital pointed out that following its post-breakout retest at the beginning of the month, it had successfully broken out of its multi-year resistance and turned it into support, allowing the current move to the final Macro Range, between $3,762 and $4,631, which may precede new highs.

The altcoin’s price, he pointed out, “historically upside wicked beyond this final major Weekly/Monthly resistance for 3 straight weeks in a row” during the previous cycle.

After reaching its ATH and trying to turn it into support in the weekly period, Ethereum was rejected from the $4,631 resistance in late 2021, as the analyst indicated. This was followed by an 80% retracement.

Given that it might reach a new all-time high but eventually be rejected, this implies that “how ETH treats $4,631 over the coming days will be pivotal” for the cryptocurrency’s future performance. Thus, in order to “go against the grain of history,” weekly closing above the Macro Range breakout level is essential.

Is A Rejection Next?

The expert said that holding the $4,630 barrier on the first try “would be a huge signal of strength,” but cautioned that “price tends to get rejected more often than not, but in a shallower manner.”

The King of Altcoins may plummet 18% to the Macro Range lows, which would be around the $3,762 support, if Ethereum is unable to recover this level. This would close a significant CME Gap that was just opened on ETH’s chart.

Rekt Capital suggests that a more violent retest of the CME gap might momentarily push the price to the Macro Range lows because the Weekly CME gap, which was generated this week, is located between $4,091 and $4,261.

In the meanwhile, if Ethereum recovers the last significant weekly resistance as a level of support,

The next step will be ETH’s price discovery surge above $5,000.

Notably, Ali Martinez predicted that the cryptocurrency would be ready for a surge to the $5,200 and $6,400 levels based on the MVRV Extreme Deviation Pricing Bands once the $4,800 barrier is converted into support.

At the time of writing, Ethereum is trading at $4,748, up 56% over the previous month.

 

 

 

 

 

 

 

 

 

 

 

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