Ethereum (ETH) is preparing for an explosive growth phase after decisively breaking the key level of $3,000. This milestone sparked optimism among traders and investors, signaling a potential rally to fresh all-time highs. ETH’s recent price action is showing a lot of momentum, suggesting that the second-largest cryptocurrency by market capitalization is ready to regain its place in the spotlight.

Renowned analyst and investor Carl Runefelt confirmed this sanguine outlook with convincing technical analysis. Sharing his observations, Runefelt noted Ethereum’s impressive recovery and growing strength. He stressed that if current momentum continues, the $6,000 threshold could be within reach sooner than many expect.

According to Runefelt, Ethereum’s upward trajectory is supported by growing network activity, increased institutional interest and broader adoption of sharp contract capabilities.

The recent rally in the cryptocurrency market, accompanied by fresh all-time highs for Bitcoin, has created an environment ripe for Ethereum to follow suit. As investors focus on ETH’s potential to outperform other altcoins, all eyes are on whether it can sustain the breakout and push higher. The coming weeks will be crucial as Ethereum strengthens its position above $3,000, potentially paving the way for a rally that could redefine expectations for this cycle.

Ethereum test delivery

Ethereum is on the verge of a significant breakout, approaching recent major supply levels before potentially embarking on a Bitcoin-like rally. After regaining local highs with great momentum, Ethereum has attracted the attention of traders and investors looking for the next gigantic move in the cryptocurrency market. Many believe that the current phase of consolidation is just the placid before the bullish storm.

Runefelt recently shared detailed technical analysis of Xhighlighting Ethereum’s readiness for a massive bull run. Runefelt emphasized that ETH mirrors Bitcoin’s recent explosive breakout, which suggests Ethereum could soon rally.

According to his analysis, this may be the last chance to buy ETH at relatively low prices before the market gains momentum. Runefelt set an ambitious price target of $6,000, predicting that this level would be achievable once Ethereum breaks through final delivery zones.

Ethereum’s potential growth is supported by a combination of technical strength and growing demand for its sharp contract platform. As Bitcoin sets fresh all-time highs, the market’s attention is gradually shifting towards altcoins, especially Ethereum. If ETH breaks through its current resistance, it could unleash a wave of buying pressure that will send prices skyrocketing to unprecedented levels.

ETH technical testing levels

Ethereum is currently trading at $3,110, after a 12% pullback from recent local highs. Despite the pullback, ETH continues to show resilience, holding well above the 200-day moving average (MA) at $2,955. This key level of demand is a powerful indicator of long-term market strength and suggests Ethereum remains in bullish territory despite short-term volatility.

The 200-day MA is a critical support zone, and its defense could pave the way for significant gains in the coming days. If ETH maintains its position above this level for an extended period, it would mean that momentum will enhance again and set the stage for a breakout to higher supply zones.

The next major resistance level for Ethereum is $3,450. A successful breakout and consolidation above this price level would confirm the breakout, putting ETH to challenge its all-time high (ATH). Such a move could reignite bullish sentiment and trigger fresh buying pressure from investors looking for further gains.

Featured image from Dall-E, chart from TradingView