Ethereum (ETH) has seen a significant rebound of 4.7% over the past 24 hours, reclaiming a key support zone. These results have fueled bullish sentiment among some market watchers who believe the cryptocurrency will break above a key resistance level in the coming days.

Ethereum regains key support

Nearly a week ago, Ethereum broke above $4,000 for the first time in nine months, approaching the March high and the long-awaited resistance level of $4,100. However, the cryptocurrency’s growth came to a halt for a while after the cryptocurrency market experienced a significant decline.

Earlier this week, ETH retreated by almost 10%, falling below the $3,500 level as Bitcoin retreated to $95,000. Following the correction, the second-largest cryptocurrency by market capitalization continued to rise, rebounding from the $3,800 support zone on Wednesday afternoon.

The price of ETH then rose another 2% in the early hours of Thursday, again surpassing the $3,900 level. As Ethereum reclaimed this key zone, Crypto analyst Carl Runefelt excellent that the cryptocurrency has returned above its rising support trend line, which it lost during the market correction.

Additionally, the Altcoins king was again testing the six-day downtrend line on the 4-hour chart, which was expected to trend upward towards $4,000 after a successful breakout from $3,940.

Ethereum broke this resistance in the following hours, reaching an intraday high of $3,985 before returning to $3,945. According to the analyst, staying above this level could push the ETH price to $4,100 in the coming days.

ETH soon to $5,000?

According to some analysts, despite regaining the $3,900 zone, Ethereum still needs to successfully turn another multi-year resistance into support. Analyst Alex Clay recently noted that ETH is retesting the $9,350 level as of 2021, having unsuccessfully turned it into support over the past few years.

Ethereum has faced rejection at this resistance level four times on separate occasions. However, when ETH broke and held this level, it rose to an all-time high (ATH) of $4,878 about three years ago.

Jelle cryptocurrency analyst suggested that Ethereum is gearing up for massive moves as it recently broke out of a multi-year pennant. ETH-based exchange-traded funds (ETFs) have seen massive growth since the post-election rally.

As Farside investors data shows that over $500 million has flowed into ETH ETFs this week, and over $1.3 billion since the beginning of this month. This signals increased demand from institutional players, increasing the cryptocurrency’s momentum.

Moreover, Donald Trump-backed DeFi project World Liberty Financial Initiative (WLFI) acquired approximately $10 million in ETH yesterday. Lookonchain said the WLFI wallet purchased 2,631 ETH at $3,801 per token.

For Jelle, “it looks like ETH season just got the nod from the institution.” If Ethereum reclaims resistance at $3,950 and gains support, “there will be little stopping it from making new all-time highs from here on out,” the analyst added.

He predicted that Ethereum could reach $5,000 after its breakout and that 2025 would be “the year of comeback for ETH.” At the time of writing, ETH is trading at $3,951, up 4.7% on the daily time frame.

Featured image from Unsplash.com, chart from TradingView.com