Ethereum (ETH) is attempting to break out of a crucial resistance level after recovering from last week’s lows. Some analysts suggested that the cryptocurrency is repeating past breakout playbooks, which could lead to a new high this quarter.
Last week, ETH surged to a seven-month high of $3,941, briefly trading above the key resistance zone before retracing to its local range. The start-of-August correction saw the cryptocurrency retreat to the range lows, retesting the $3,350-$3,400 area as support.
Ethereum attempted to reclaim the range highs as this week started, trading in the $3,600-$3,700 mid-zone for the past three days. However, today’s pump saw the second-largest crypto surge past the $3,800 area and retest the $3,850 local resistance.
Following the May breakout, Ethereum traded within its local range, failing to break above the $2,700 resistance multiple times before its June bull and bear traps. Following the fake-out and retest of the lows, the cryptocurrency broke out of its range and hit a new yearly high in the following weeks.
A breakout from this zone could propel the price above the $4,000 barrier if history repeats. Based on this, the analyst suggested that a $5,000 target is possible before the quarter ends.
He noted that the last time ETHDOM rallied to this area was in July 2020, when it consolidated between the 12% to 16% zone for months before breaking out in 2021. According to the analyst, ETHDOM is now challenging to transition into a similar consolidation phase.
As of this writing, ETH trades at $3,826 in the one-week chart, a 48% increase in the monthly timeframe.
