Ethereum Bulls Eye New Records Despite Market Volatility — What’s Driving Sentiment?

[Ben Graham]

Despite a recent bout of market volatility, Ethereum’s bullish sentiment remains strong. With ETH holding strong above key support levels, its growing institutional demand and dominance in DeFi and staking, many believe the foundation for a new all-time high is already in place.

What Could Derail Ethereum’s Path To A New ATH?

In an X post, crypto investor CryptoELITES pointed out that Ethereum is still on track for a new all-time high. The ETH chart is exhibiting a similar pattern to previous cycles, bouncing off a bottom trendline.

If the pattern holds, it implies that Ethereum has re-entered its main growth channel, the very setup that led to explosive rallies in prior cycles. As a result, the expert is confident and predicts that ETH could be headed for a new 2025 all-time high at the top.

Emperor, a respected market analyst, has provided a detailed technical update on ETH price action. His analysis focuses on the key levels of support and resistance that are currently dictating the market’s direction, particularly following a period of consolidation.

Emperor noted that after reaching its recent ATH, Ethereum’s price entered a phase of consolidation, trading within a specific range. A key resistance level had been holding the price down, but ETH eventually broke above it. However, a recent price move brought ETH back to this same resistance level for a bearish underside retest, which is a common technical event. 

According to the analysts, the retest confirmed the rejection, where the price did not successfully bounce off the level and has now returned to it. The focus is now on a key support and resistance level that previously acted as resistance during the consolidation. Meanwhile, the market is now looking to see if this level, with confirmation from trading volume, can turn into support. 

The Trigger For Full Expansion

Ethereum has already done the heavy lifting this cycle by breaking above its key range highs around $4,100 and holding that level as support. Daan Crypto Trades, a crypto trader and investor, has revealed that the only remaining level is the 2021 all-time high, which ETH has briefly swept. However, it has not yet been able to go into full price discovery mode. 

Daan emphasizes the importance of the bulls holding the $4,000 to $4,100 level on higher timeframes. He noted that the wicks below are fine, as these can be a normal part of retesting a support level. 

However, closing below that point would be a bearish sign that could invalidate the current upward momentum. If ETH can clear $5,000 and sustain it, that’s the point where further expansion would begin. Until then, price action remains in the choppy phase.