Ethereum (ETH) Retracing After Testing Its All-Time Highs. What’s Next?

Price of ETH came very close to an ATH test. For now, the 2021 highs are providing resistance.

Ethereum’s chart setup is bullish, suggesting that it will eventually clear ATH. However, a breakout to set new ATH may not be imminent. It seems unavoidable though.

Similar to XRP, which tested ATH in recent weeks, after 6 full years, there tends to be a trend which is that lagging eventually become leaders provided they have long term bullish reversal patterns.

Ethereum testing all-time highs

In order to understand the nature of the Ethereum chart, we need its weekly timeframe with our annotations (see below):

The weekly chart structure since 2022 is a bullish reversal, clear and clean.

The very long term rising trendline had confidently provided support, in each and every year since the big decline in 2022.

The Fibonacci levels, especially the 50% Fib level (fine purple line), has worked very precisely. This adds confidence to the bullish nature of this pattern.

The last touch of the 50% Fib level occurred on Aug 5th, 2024; ETH did not look back since then!

That’s a lot of ‘high confidence’ characteristics, and the bullish outcome seems unavoidable.

Ethereum – when will ATH be hit?

That’s a great question, obviously the million dollar question top of mind of every crypto enthusiast.

Let’s work with ranges here because identifying a fixed date for an altcoin to hit ATH seems too ambitious as a goal:

Worst case – ETH needs to drop back to the long term rising trendline. In this case, it might hit $2,800 in Q1/2025.

Base case – ETH needs to drop back to a key support level, the most obvious one being the 25% Fib level at $3,150, somewhere in the coming month(s).Best case – ETH is ready to move higher.

The $4,000 to $4,400 area will provide huge resistance. It won’t be easy to overcome this.

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