Ethereum (ETH) is leading the end-of-the-week market recovery after finally breaking above the $4,800 resistance. As the cryptocurrency is attempting to reclaim this crucial area, some analysts suggest that a new all-time high (ATH) is imminent.
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Ethereum Hits New Multi-Year High
On Friday, Ethereum broke above the $4,800 resistance for the first time since 2021, hitting a multi-year high of $4,834. The cryptocurrency has rallied over 14% over the past 24 hours, driven by Federal Reserve Chairman Jerome Powell’s annual address at Jackson Hole.
In his speech, Powell signaled the possibility of an interest rate cut, affirming that “with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.”
Following Powell’s remarks, the market soared, with Bitcoin (BTC) jumping from its local range low to the $117,000 area. Meanwhile, Ethereum initially climbed from the $4,200 support to reclaim the crucial $4,700 barrier.
In a statement to CNBC, Jordi Alexander, CEO of crypto trading firm Selini Capital, suggested that crypto traders were caught completely offside by Powell’s dovish comments.
“The market positioning in recent sessions has seen clear risk-off moves in assets like crypto and tech, and today’s setting up of a September rate cut is causing a panicked repositioning, which could continue through the illiquid weekend as shorts get squeezed,” he affirmed.
Meanwhile, Joseph Chalom, Co-CEO of SharpLink Gaming, asserted that “the markets are loving Powell’s dovish speech. September rate cuts seem imminent. We’re at a pivotal moment in the market cycle.”
ETH Ready For More?
Notably, ETH has been consolidating between $3,762 support and $4,631 resistance since the early August breakout, retesting the $4,000-$4,100 mid-zone of this week’s pullback.
On Friday afternoon, Ethereum continued its climb above the $4,800 resistance. This level was unsuccessfully tested last week, when the King of Altcoins hit a local high of $4,788 before being rejected.
Analyst Crypto Jelle highlighted a one-week falling wedge pattern on ETH’s chart, which targeted a breakout to the $4,600-$4,800 area. Following today’s price jump, the analyst suggested that Ethereum is ready to target its all-time high of $4,878 after the breakout.
Additionally, he noted that ETH already broke out of an 18-month bullish megaphone this month, which targets the $10,000 level. He explained that the cryptocurrency has successfully retested the key resistance level, around $4,000, during this week’s pullback and has “hardly any resistance left.”
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Nonetheless, he warned that a pullback is likely to come following the massive pump but added that “the intent is clear. This market wants higher.”
Similarly, Ted Pillows affirmed that volatility was expected after Powell’s speech, noting that it had happened in previous years. However, he suggested that a big ETH rally will follow, “just like the last time.”
As of this writing, Ethereum is trading at $4,799, a 32.6% increase in the monthly timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
