Ethereum (ETH) has recently displayed notable price activity, breaking above the key resistance level of $3,200 for the first time in nearly a month and reaching a four-week high of approximately $3,259. This upward movement marks an 8.3% increase since Friday, with the crypto consolidating above the $3,100 level over the weekend. The current performance suggests that Ethereum is attempting to establish the $3,200 level as significant support, which could serve as a foundation for further upward momentum.
Despite Ethereum experiencing its worst quarterly performance in six years with a decline of 28.28% in the fourth quarter, some analysts interpret this downturn as potentially setting the stage for a bullish reversal. Historically, Ethereum ’s performance following negative Q4 outcomes has often been positive in the first quarter of the subsequent year. Past patterns reveal that declines at year-end tend to function as a reset rather than a reversal, allowing the asset to rebound strongly in the new year, sometimes posting quarterly gains of over 50%. Such historical tendencies suggest that the recent end-of-year weakness may be an opportunity rather than a warning.
Looking ahead, market strategists highlight that Ethereum is approaching critical resistance levels within a consolidation range established since November. The cryptocurrency has been trading between approximately $2,700 and $3,400, facing persistent resistance around $3,000 and $3,200. If ETH can sustain its current momentum and flip these resistance levels into support, it could propel the price toward the $3,800 to $4,000 zone, where significant resistance awaits. Conversely, failure to breach this resistance might result in the price retesting support levels around $3,000, leading to potential consolidation within this range.
Technical analysis also points to the formation of a symmetrical triangle pattern, indicating a possible 30% move higher if the breakout is sustained. A successful breakout from this pattern could see Ethereum retesting the $4,000 level in the coming weeks, positioning itself for a potential return to its third-quarter highs. Currently, Ethereum is trading near $3,253, reflecting a daily increase of approximately 3.4%.
