Ethereum Tests Multi-Year Support, Eyes $4K Resistance

Ethereum (ETH) has recently experienced a price drop to $2,120, its lowest point since early August, but has since rebounded to trade above $2,650. The cryptocurrency is currently testing a multi-year uptrend support line that has historically led to rebounds. Previous bounces from this support level resulted in moves toward the $4,000-$4,100 resistance zone. The ETH/BTC pair is trading at 2016-2020 levels between 0.023-0.036, suggesting a potential breakout that could lead to retesting the all-time high of $4,878.

Ethereum has shown renewed strength in the market, bouncing back above $2,650 after touching a monthly low. Traders have identified several technical patterns that could suggest higher prices ahead. The second-largest cryptocurrency by market value recently dropped to $2,120, marking its lowest point since early August. This decline was part of a broader market correction that affected most digital assets.

After the initial drop, Ethereum has been trading between $2,600 and $2,830, attempting to establish new support levels. The cryptocurrency has faced challenges in maintaining stability above these price points over the past week. Recent market data shows that Ethereum has managed to reclaim the $2,600 level, which served as a key resistance point before the breakout in the third quarter of 2024. This price area has historically acted as an important technical level for traders.

Technical analysis reveals that Ethereum is currently testing a multi-year uptrend support line. This trendline has been in place since 2022, and the cryptocurrency has successfully bounced from this level on four previous occasions. Market data indicates that during the 2022 retests of this ascending trendline, Ethereum faced resistance between $1,900 and $2,200 before eventually breaking higher. The more recent bounces in 2023 and 2024 saw the cryptocurrency reach resistance near the $4,000 to $4,100 range.

The cryptocurrency’s technical structure suggests the formation of a multi-year ascending triangle pattern. This pattern often preced