Ethereum News Today: Ethereum Up 70% in Month as $3,800 Resistance Tested for Third Time

Ethereum (ETH) is navigating a pivotal moment in its price trajectory as it attempts to reclaim the $3,800 resistance level after a 70% rally in the past month. The cryptocurrency has retested this critical threshold multiple times, with analysts highlighting both the potential for a breakthrough and the risk of a pullback. Recent price action shows Ethereum hitting a yearly high of $3,860 before retreating to $3,600, underscoring the significance of this level as a psychological and technical battleground. Analyst Ali Martinez emphasized that the $3,835 resistance and $3,490 support will likely dictate the next phase of ETH’s movement, with the former representing a key hurdle to new highs [1].

The $3,825 area, where 2.82 million addresses have accumulated 1.48 million ETH, is a critical focal point. Reclaiming this level could pave the way for a rally to the cycle high of $4,107, but a strong rejection might force Ethereum back toward the $3,490 support zone, where 4.18 million addresses hold 3.53 million ETH [2]. Market Watcher Andrew Crypto anticipates a short-term correction, stating, “a chart without a correction isn’t a healthy chart.” He projected a potential drop to the $3,300-$3,400 range, followed by a retest of $3,800 if a pullback materializes [3].

Historical parallels are fueling optimism among analysts. Crypto Bullet drew comparisons between Ethereum’s current pattern and its 2019-2020 cycle, noting the formation of a “Descending Broadening Wedge” similar to a pre-breakout setup. The analyst argued that Ethereum’s third test of the $3,800 resistance could mirror its 2020 breakout, potentially propelling prices toward $8,000-$10,000. However, a 10%-15% pullback to $3,300-$3,400 is seen as a possible precursor to such a move [4]. Merlijn The Trader further reinforced this narrative, highlighting similarities to Ethereum’s 2017 rally, where a two-time retest of key resistance preceded a 5,000% surge. The trader attributed the current dynamics to institutional involvement, suggesting a “similar performance this cycle” is plausible [5].

As of the latest update, Ethereum trades at $3,698, reflecting a 21% weekly gain. The cryptocurrency’s ability to hold above $3,600 will be crucial in determining whether the $3,800 retest culminates in a sustained bullish breakout or a consolidation phase. Analysts caution that while the technical setup appears favorable, volatility remains a defining characteristic of the market, necessitating close monitoring of key levels.

Source: [1] [Ethereum Ready For $3,800 Reclaim Despite Rejection – Third Time’s The Charm?](https://www.newsbtc.com/news/ethereum-ready-for-3800-reclaim-despite-rejection-third-times-the-charm/)

[2] [Ethereum Ready For $3,800 Reclaim Despite Rejection – Third Time’s The Charm?](https://www.newsbtc.com/news/ethereum-ready-for-3800-reclaim-despite-rejection-third-times-the-charm/)

[3] [Ethereum Ready For $3,800 Reclaim Despite Rejection – Third Time’s The Charm?](https://www.newsbtc.com/news/ethereum-ready-for-3800-reclaim-despite-rejection-third-times-the-charm/)

[4] [Ethereum Ready For $3,800 Reclaim Despite Rejection – Third Time’s The Charm?](https://www.newsbtc.com/news/ethereum-ready-for-3800-reclaim-despite-rejection-third-times-the-charm/)

[5] [Ethereum Ready For $3,800 Reclaim Despite Rejection – Third Time’s The Charm?](https://www.newsbtc.com/news/ethereum-ready-for-3800-reclaim-despite-rejection-third-times-the-charm/)