While Bitcoin heads back to its all-time high and a potential leap up into the next leg of this bull market, something is different. Ethereum, the slumbering giant, has suddenly woken up and has skyrocketed back above $2,000 in very quick time.
In bull markets before this one, Ethereum was the major catalyst that led the rest of the altcoins higher, once Bitcoin had done its thing and was on pause.
However, since the $4,865 all-time high in November 2021, the $ETH price plumbed the depths of the following bear market, and even when the new bull market started at the beginning of 2023, the $ETH price generally did not lead.
A rally swing high came to a conclusion in March 2024 at just over $4,000, and this was equalled in December 2024, forming a double top. What then followed was a huge sell-off that took the price all the way back down to one of the last ditch supports at $1,400.
It was wondered by many if the last rites were going to be said for what is still the biggest cryptocurrency by market capitalization after Bitcoin. Of course, this couldn’t happen. The tech might be battling to keep up with some of its layer 1 competitors, but this was still a trusted and secure blockchain. A turning point had to come at some time.
Source: TradingView
The explosive price move for $ETH through the descending trendline is a joy to behold. This was a towering 37.5% pair of green candles that went from $1,800 to nearly $2,500 in less than 48 hours. If this hasn’t rejuvenated the altcoins, what else possibly could?
Nevertheless, planting one’s feet on solid ground again, the price looks to have been firmly rejected from the major $2,500 horizontal resistance level. The 4, 8, and 12 hour Stochastic RSIs have all topped out, and a period of consolidation could be incoming. The trick will then be for the bulls to keep as much of these gains as they can, and even try to claw above $2,500 in order to consolidate there. Reasonable support is below at $2,150 down to $2,000.
Source: TradingView
Moving right up into the monthly time frame, the $2,500 horizontal resistance can be appreciated. This may not break at what is now the second time of trying. That said, the Stochastic RSI on this time frame has the indicators bouncing from the bottom. If they can keep heading up and can cross the 20.00 level, the resulting price momentum can be simply huge. One only has to look back the previous time the indicators crossed up from the bottom. That particular move was to the tune of 242%. If anything like this move were to repeat again, the all-time high would surely not last.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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