Ethereum Breakout Is ‘Imminent’ Amid $3,850 Retest – Analyst Eyes $5,000 For This Quarter
Ethereum ($ETH ) is attempting to break through a key resistance level around $3,850 after a recent 6.3% surge, sparked by reports that former President Trump may sign an executive order allowing alternative assets, including crypto, in 401(k) retirement plans. ETH has been fluctuating between $3,400 and $3,800 since mid-July, repeatedly testing the resistance zone without a confirmed breakout.
Last week, ETH briefly hit a seven-month high of $3,941 before correcting to the $3,350 support zone. Now, $ETH has rebounded and is once again testing the $3,850 resistance level. Analysts believe a breakout is likely, with some predicting a move above $4,000 and even targeting $5,000 before the quarter ends if historical patterns repeat.
Technical analyst Alex Clay points to an 18-month broadening wedge pattern, suggesting a breakout is imminent. Similarly, Ted Pillows notes parallels between the current setup and past rallies, including a potential "bull trap" and range breakout.
Additionally, Ethereum Dominance (ETHDOM) has surpassed 12% for the first time in five years, signaling growing strength in the altcoin market. $ETH is currently up 48% over the past month, trading around $3,826.