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After soaring over 10% on Wednesday, Ethereum (ETH) has jumped past the $2,000 mark for the first time since March, leading some analysts to suggest that the second-largest crypto could reclaim its macro range in the coming days.
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Ethereum Hits Seven-Week High
For the first time in over a month, Ethereum has retested the $2,000 resistance, hitting a seven-week high of $2,075. The King of Altcoin lost this level at the end of March, nosediving to its two-year low of $1,385 in the following weeks.
Amid the late-April market recovery, ETH climbed above crucial levels, reclaiming the $1,600-$1,750 zone over the last 14 days. Earlier this week, the cryptocurrency finally reclaimed the $1,800 resistance, but some investors worried about its sideways price action and a potential drop to lower support levels.
Nonetheless, Ethereum soared by 8.3% toward the $1,950 level after US President Donald Trump revealed yesterday that a “major trade deal” with a “big, and highly respected, country” would be announced on May 8.
On Thursday, Trump’s $6 billion deal with the UK pushed ETH past the $2,000 mark and near the $2,100 level. Analyst Rekt Capital highlighted the “strong breakout so far,” noting that the cryptocurrency held the bottom of its historical demand zone and rebounded around 14% to the top of the range.
After the price jump, the analyst explained that ETH must turn the $1,930 level into support to avoid an upside wick and rejection, and confirm a breakout toward the $2,200 area.
“Ethereum will need to simply stay above $1930 to continue to be positioned for a revisit of $2200 (black). The goal for ETH is to use this light blue historical demand area to resynchronise with its $2200-$3900 Macro Range,” he detailed.
ETH Eyes New Bull Rally
Rekt Capital also pointed out ETH’s dominance was “upticking after making new All Time Lows,” which resembles its 2020 performance. At the time, the cryptocurrency’s dominance bounced after making a new low, surging toward higher levels in the following months.
Meanwhile, Daan Crypto Trades noted that Ethereum is testing its range high against its BTC trading pair. According to the post, “this move is tiny compared to what it has to make up for to see some proper relief. You can however already see the market wide impact it has on alts by just moving ~7% against BTC.”
Despite looking “decent” after the price jump, the trader advised investors not to get overexcited until ETH/BTC breaks out and holds above the 0.0202 range high.
“If it does that, we can get a setup for a larger potential few week reversal in ALT/BTC pairs and for BTC.D to come down. For now, still rangebound,” Daan explained.
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He also suggested that investors should be prepared for a big price move, as this performance “generally ends in violent fashion with a big wick towards the upside before cooling off.”
Ali Martinez highlighted that the key supply barrier for the cryptocurrency sits at around $2,380, where 12.72 million addresses bought 69.6 million ETH. According to the analyst, “clearing this level could ignite a new bull rally.”
As of this writing, Ethereum trades at $2,050, a 13.5% surge in the daily timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
