Ethereum (ETH) is trying to bounce back from a Q4 market correction, retesting the $3,000 barrier. As we approach the end of November, some market watchers suggest that a year-end rally could still be possible in the coming weeks.
Related reading
Ethereum expects $3,000 before key upgrade
On Wednesday, Ethereum experienced a daily gain of 4.4%, retesting the $3,000 level for the first time in almost a week. The cryptocurrency traded within the $2,680-$2,980 price range amid the latest market-wide correction, which also saw Bitcoin (BTC) shed some key support levels.
Earlier in the week, the altcoin king broke above the $2,900 area, attempting to retest the next key resistance over the past two days, but ultimately failed to regain it. Analyst Ted Pillows highlighted this performance, noting that ETH “re-reached the $2,950-$3,000 zone and was rejected.”
According to the post, until Ethereum successfully regains this level, “the chances of a new low are high.” On the contrary, if the cryptocurrency breaks above this high-volume zone in the coming days, investors could “expect a rally towards the $3,400 level.”
Analyst too suggested that the altcoin could see a significant rebound next week, fueled by the upcoming Fusaka upgrade. As he explained, ETH jumped about 50% after the Pectra network upgrade in May.
As NewsBTC reports, the upgrade introduced a number of improvements to increase transaction capacity, improve efficiency and reduce system stress. After the implementation, the cryptocurrency rose 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 most recent all-time high (ATH) of $4,946.
Now, the Fusaka upgrade is the biggest network update since The Merge and is expected to arrive on December 3, “to address one of the most pressing network bottlenecks: data availability for data collection,” VanEck explained in October.
Based on this, Ted Pillows suggested that if ETH repeats its post-Pectra performance with a new upgrade, the price of the altcoin could jump above the $4,000 resistance in the next few weeks.
End of the year rally underway?
Market watcher Merlijn The Trader too suggested that Ethereum may soon experience another leg, as it “repeats the textbook wave structure” it has printed multiple times since bottoming out in the mid-2022 bear market.
“Wave 1: Cycle started. Wave 2: Weak hands shaking. Wave 3: Where parabolas form,” explained the X trader, noting that ETH could break its corrective move and potentially see another rally in the coming weeks.
“This pattern has been printed 3 times before. Each time ETH went vertical. Now it’s flashing again,” he stated. Similarly, Michaël van de Poppe highlighted Ethereum vs. Bitcoin trading pair, confirming that investors should keep an eye on the chart.
Notably, ETH is retesting the multi-month downtrend resistance line against BTC and could “see a strong breakout to the upside in the coming weeks”. “This cycle is far from over,” added van de Poppe.
Related reading
Meanwhile, Rekt Capital recorded that Ethereum Dominance continues to occupy an area that served as a zone of consolidation before the rise in 2021. “As long as ETHDOM can hold above 10.05%, it should be positioned for higher levels of market dominance over time,” the analyst concluded.
As of this writing, ETH is trading at $3,023, up 2% on a weekly time frame.
Featured image from Unsplash.com, chart from TradingView.com
About the Author
