Following a recent breakout, Ethereum (ETH) is now testing a key resistance area, attempting to solidify it as support. Analysts suggest the altcoin is poised to extend its bullish momentum, with some predicting a major market rotation is on the horizon.
Ethereum recently surged past a critical barrier, retesting the $3,400 level for the first time in over a month. The cryptocurrency has gained 6% on the daily chart, rising from around $3,100. While ETH had been trading between $3,000 and $3,300 since the start of the year, it failed to break above that range last week. Now, it has closed daily above that level and is working to establish it as support.
Analyst Michaël van de Poppe believes “it’s ETH season,” noting that Ethereum has held above the 21-day Moving Average since January 1. He views this level—lost during corrections in early Q4 2025—as crucial for maintaining upward momentum. Van de Poppe expects Ethereum to soon retest the $3,800 area, stating it is “ready to make new highs and continue the uptrend.”
Meanwhile, Daan Crypto Trades points out that ETH faces a “big test.” Over the past two months, it has been range-bound between $2,600 and $3,300. A decisive breakout is needed to determine its next direction. According to his analysis, Ethereum must reclaim the $3,350 level, where the 200-day exponential moving average sits. This indicator has acted as a key rejection point since November. A break above it could propel ETH toward the daily 200MA around $3,600.
Crypto Jelle is also optimistic, stating that Ethereum “looks better than it has looked in years” against both Bitcoin (BTC) and the US dollar. He argues that ETH’s downtrend against BTC has ended, and its USD chart appears ready to challenge the $4,000 level again. He suggests that a rally in the ETH/BTC pair could drive significant gains for ETH/USD in the coming months.
Similarly, analyst Alex Wacy suggests the “biggest ETH rotation in 8 years [is] forming right now.” He notes that Ethereum is replaying the pattern that led to its 2018 breakout against BTC, but with larger players and more capital involved. Back then, ETH underwent multi-year accumulation against Bitcoin from 2015 to 2017, followed by a massive expansion in 2018. After an initial breakout, it consolidated within a falling wedge pattern before surging 50x.
This time, the ETH/BTC pair has again formed a multi-year falling wedge, which was broken in Q4 2025. If history repeats, Ethereum could see another substantial rally against Bitcoin in the months ahead.
As of this writing, Ethereum is trading at $3,375, up 5% over the past week.
Frequently Asked Questions
Of course Here is a list of FAQs about the topic Analyst Claims Ethereum Faces a Crucial Test Is an ETH Rally on the Horizon designed to be clear and helpful for all levels of understanding
Beginner General Questions
1 What does it mean that Ethereum is facing a crucial test
It means Ethereums price is approaching a key level on its price chart that analysts believe will determine its next major moveeither a breakout upward or a breakdown downward
2 What is an ETH rally
An ETH rally is a period of sustained and significant price increase for Ethereum
3 Why is this test so important right now
Analysts look at these tests to gauge market sentiment Holding above a key support level can build confidence and attract buyers while falling below it can trigger selling and lead to further declines
4 Im new to crypto What are support and resistance
Support A price level where buying interest is historically strong enough to prevent the price from falling further Its like a floor
Resistance A price level where selling pressure is historically strong enough to prevent the price from rising further Its like a ceiling
5 Is this just about price charts or are there other factors
While the crucial test is often a chartbased concept realworld factors always influence it These include broader crypto market trends Ethereum network activity regulatory news and macroeconomic conditions
Intermediate MarketRelated Questions
6 What specific price level are analysts watching as this test
This changes with market conditions Common levels analysts cite are round numbers the 200day moving average or previous swing highslows from the last few months You would need to check the specific analysts report for their identified level
7 What could trigger an ETH rally if it passes this test
Potential triggers include increased institutional investment a surge in network usage a general riskon sentiment in financial markets or positive developments in upcoming Ethereum upgrades
8 What could cause it to fail the test and drop further
Potential causes include negative regulatory news a major downturn in Bitcoin dragging the whole market down