Ethereum (ETH) is attempting to reclaim a crucial area as price nears its 2021 all-time high (ATH). However, an analyst suggested that this week’s performance will be key for the long-awaited price discovery rally.
Over the past week, Ethereum has had a remarkable performance, jumping nearly 30% to a multi-year high of $4,750 on Wednesday afternoon, just 3.3% away from its ATH of $4,848, recorded in November 2021.
However, he noted that the altcoin’s price “historically upside wicked beyond this final major Weekly/Monthly resistance for 3 straight weeks in a row” last cycle.
As the analyst explained, in late 2021, Ethereum was rejected from the $4,631 resistance after hitting its ATH and attempting to turn it into support in the weekly timeframe, which was followed by an 80% retracement.
Holding the $4,630 mark on the first attempt “would be a huge signal of strength,” the analyst asserted, but warned that “more often than not, price tends to get rejected but in a shallower manner.”
The Weekly CME gap, created this week, sits between the $4,091-$4,261 area, leading Rekt Capital to suggest that a more volatile retest of the CME gap could briefly send the price to the Macro Range lows.
Meanwhile, if Ethereum reclaims the final major weekly resistance as support, ETH’s price discovery rally above the $5,000 mark will be next.
As of this writing, Ethereum is trading at $4,748, a 56% increase in the monthly timeframe.
