Ethereum is showing strong support above the $3,900 level

TLDR

Ethereum breaks above $4,000 again, with a 30% gain in the past month and an 80.5% increase since December 2023. Bitcoin's new all-time high of $107,822 on December 16, 2024 ETH. Graduation is contributing to positive market sentiment.ETH is currently 17.8% below its November 2021 all-time high of $4,878.26.CoinCodex predicts that ETH will reach a new high of $5,094.65 on February 21, 2025, representing a 26.69% increase.

Ethereum (ETH) broke through the $4,000 barrier amid strong market conditions and marked another milestone in its price journey as investor confidence grew. The second largest cryptocurrency by market capitalization has shown remarkable resilience, posting a 1.4% gain in daily trading and an impressive 30% increase over the past month.

The digital asset's recent performance reflects broad market strength, with significant gains across different timeframes. The weekly charts show a rise of 8.1%, while the 14-day period shows an upward movement of 10.1%. Perhaps most impressive is the year-over-year comparison, where ETH recorded an 80.5% gain since December 2023.

Technical analysis shows a bullish trend line forming support at $3,940 on the hourly chart. The price action shows ETH trading above both the psychological level of $4000 and the 100-hourly simple moving average, indicating strong buyers in the market.

The current rally appears to be closely tied to Bitcoin's recent performance, with BTC reaching a high of $107,822 on December 16, 2024. As a market leader, Bitcoin's price movements set the tone for the entire cryptocurrency market and Ethereum. It has historically shown a strong correlation with BTC uptrends.

Trading data suggests that Ethereum will face immediate resistance near $4,070, which is the 76.4% Fibonacci retracement level from $4,107 to $3,946 recently. A discovery above this level may open the way to higher defense points.

The next highest resistance level stands at $4,120, followed by possible targets at $4,250 and $4,350. Market observers note that clearing these levels could push ETH towards the $4,500 mark in the near future.

Support levels have asserted themselves at key points, with initial support near $3,980 and a strong base at $3,940. These levels provide useful price floors to help maintain the current upward momentum.

The upcoming political transition appears to be playing a role in market sentiment. Donald Trump's inauguration on January 20, 2025 has created optimism among crypto investors, given his administration's pro-cryptocommentary stance.

Recent appointments, including a new SEC chairman and a White House crypto czar, have further boosted market confidence. These regulatory developments suggest a more favorable environment for cryptocurrency adoption and growth.

Historical context shows that Ethereum still trades below its November 2021 high of $4,878.26. The current price represents a 17.8% gap from this peak, suggesting room for further upside.

Technical Indicators Hourly MACD is accelerating in the bullish zone and RSI holds above the 50 mark. These metrics typically suggest that pressure on prices will continue.

CoinCodex analytics are bullish targets for ETH, predicting a new all-time high of $5,094.65 on February 21, 2025. This forecast represents a growth of 26.69% from the current level.

Hourly chart patterns show ETH maintaining stability above key moving averages, with persistent buying pressure evident in recent trading sessions. Inflation rate indicators suggest that market participation is growing.

Trading activity has particularly increased on major exchanges, indicating broad market participation with ETH's upward movement. This upward movement often precedes sustained price trends.

Buyers entering previously established support zones provided reliable support for any pullbacks. This high-low pattern supports the overall market structure.

Recent price action shows that ETH has successfully held above the $4,000 level despite lower support being tested occasionally. The ability to maintain this price point indicates strong buyer confidence at current levels.

The most recent data shows ETH trading at $4,020, the highest 24-hour trading volume on major cryptocurrency exchanges.