Ethereum – the 'King of Altcoins' – is approaching the all-time high (ATH) of 2021, raising expectations for a new price discovery phase. However, analysts warn that price performance this week will be decisive for ETH's next direction.

🚀 Ethereum Conquering the Final Resistance Area

In the past week, Ethereum has had an impressive breakout, rising nearly 30% to a multi-year peak of $4,750 on Wednesday, just 3.3% away from the ATH of $4,848 (November 2021).

Since the correction at the beginning of the month, ETH has recovered 40%, breaking through the local sideways price range and reclaiming the significant psychological level of $4,000 last Friday. The upward momentum continues to help ETH surpass the $4,400 – $4,500 range on Tuesday and is now fluctuating around $4,600 – $4,750, continuously challenging the 'final boss' – the resistance area of $4,800.

📊 Technical Analysis Perspective

Analyst Rekt Capital states that ETH has broken multi-year resistance and turned it into support after the retest at the beginning of the month, helping the price move towards the Macro Range area of $3,762 – $4,631, paving the way for new highs.

However, during the 2021 cycle, ETH slightly broke the resistance of $4,631 for three consecutive weeks but could not maintain it, being rejected at the ATH and subsequently dropping by up to 80%.

This makes how ETH reacts to the $4,631 mark in the coming days a crucial factor. If the weekly candle closes above the Macro Range breakout area, ETH will have the chance to 'reverse history' and aim for a new ATH.

⚠️ Scenario If Rejected

  • Positive signal: Holding $4,630 on the first attempt will be a very strong indicator.

  • Risk: Typically, the price is still rejected, but the drop could be milder. If it fails, ETH could drop 18% to the Macro Range bottom of $3,762, while filling the newly formed CME Gap at $4,091 – $4,261.

🎯 Bullish Scenario – Price Discovery

If ETH turns $4,800 into strong support, according to analyst Ali Martinez, the price could enter a price discovery phase and rise to:

  • $5,200

  • $6,400
    based on the indicatorMVRV Extreme Deviation Pricing Bands.

Currently, ETH is trading at $4,748, up 56% in the 1-month timeframe – a gain that indicates strong capital inflow back to the 'king' of the altcoin market.