During the recent market recovery, Ethereum (ETH) is revisiting a critical support level for the first time in a week, prompting speculation that the anticipated end-of-year rally may be postponed for a few more weeks.
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Ethereum Eyes Next Key Level
On Monday, Ethereum tested an important level after reclaiming it during the Sunday rebound. The cryptocurrency has been trading in the $3,100-$3,500 range following last week’s market turbulence, briefly dropping to a four-month low of $3,057.
Over the weekend, Ethereum reclaimed the $3,400 resistance and surged about 7% to reach the $3,650 level, stabilizing around $3,500-$3,550 at the start of the new week.
Daan Crypto Trades noted that maintaining the current levels is crucial in the short term, stating that “If the bulls can do that, we can start looking to fill up some of the gaps created during the recent downturn.”
However, Ali Martinez pointed out that over 869,000 ETH were accumulated around the $3,700 level, forming a significant resistance barrier on Ethereum’s path to the psychological barrier of $4,000.
Martinez also highlighted that the number of mega-whale addresses holding more than 10,000 ETH decreased by nearly two dozen in the past week. According to CoinGlass data shared by the analyst, 23 of the largest Ethereum whales sold or redistributed their holdings between November 4 and November 8.
Despite this, large-scale investors continued to show confidence in Ethereum during the market sell-off. BitMine CEO Tom Lee affirmed that “the recent dip in ETH prices presented an attractive opportunity” to acquire the cryptocurrency.
As a result, the company purchased 110,288 ETH, valued at $400 million, last week, increasing its holdings to 3,505,723 million tokens, representing 2.9% of ETH’s total supply.
ETH’s Q4 Rally Delayed?
Despite the recent recovery, analyst Ted Pillows suggested that Ethereum may not reach new highs this month, citing a lack of correlation with M2 supply, similar to Bitcoin. According to the analyst, this typically occurs when US liquidity growth is constrained.
Based on this analysis, he believes that the second-largest cryptocurrency by market capitalization could consolidate for the remainder of the month “before taking off in Dec 2025/Jan 2026.”
Similarly, analyst Crypto Wolf predicts that ETH will likely establish a clear higher low near $3,400-$3,500 this month before targeting new all-time highs in December.
The market watcher emphasized that $3,100 is the next major support zone after the recent downturn. Maintaining this level in the higher timeframes could provide a foundation for Ethereum to retest recent highs. However, a loss of this crucial area could mark the beginning of a bear market.
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Meanwhile, analyst Cas Abbé observed that ETH’s recent performance resembles its Q2 price action, where the altcoin briefly broke below its multi-month consolidation range before recovering and rallying 100% to new highs in the following months.
If history repeats itself, Ethereum could be gearing up to test the $3,700-$3,800 resistance levels soon and potentially experience a significant rally by the end of the year.
Featured Image from Unsplash.com, Chart from TradingView.com