Ethereum Reaches Significant Milestone Following Largest Weekly Candle in Years – What’s Next?

Ethereum has experienced a significant boost, enjoying a remarkable 45% increase last week. This upswing has enabled it to regain important price levels, suggesting a broader altseason may be on the horizon. The second-largest cryptocurrency by market capitalization is now entering critical resistance areas that could shape the future trajectory of this rally. After a prolonged period of underperformance and negative sentiment, the sudden resurgence of ETH is refocusing investor attention on the altcoin market, with analysts suggesting that Ethereum’s breakout could act as a catalyst for a widespread recovery in the sector.

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Renowned analyst Daan provided a technical analysis underscoring the importance of Ethereum’s recent movements. He pointed out that the substantial weekly candle—one of the largest seen in recent years—was the result of a combination of technical factors and short squeezes, surprising many bearish investors.

This momentum not only negated recent bearish trends but also indicated a fundamental shift in market dynamics. With Ethereum now breaking into fresh territory and boosting investor confidence, the overall market appears ready for renewed vigor. If ETH maintains its position above current levels, it could set the stage for altcoins to follow suit in what might be the most significant altseason since 2021.

Ethereum Gains Momentum While Approaching Key Resistance

Ethereum is showcasing apparent strength after enduring months of persistent bearish trends. From late December 2024, ETH had been on a downward path, diminishing over 66% as investors shifted focus to other assets amid uncertain economic conditions and reduced demand for altcoins. A notable change in sentiment became evident in early April, causing Ethereum to surge quickly, amassing over 85% in just a few weeks. This rally has led ETH back to critical resistance levels, pivotal for determining if a sustained upward trend is forthcoming.

Daan emphasized the relevance of this movement, noting that Ethereum is currently at a “significant level.” He remarked that last week’s price behavior resulted in the largest weekly candle in recent years, driven by a substantial short squeeze. Prolonged bearish positions were quickly eliminated as the rally unexpectedly lifted prices sharply.

Daan warns that while this movement is noteworthy, the next phase will require careful management of volatility: “Approach this level by level,” he suggests, “and monitor developments next week to see where altcoins are likely to gain traction post-squeezes.”

This moment is critical not just for Ethereum but for the altcoin market at large. ETH’s rebound often signals a revived appetite for risk and capital flowing into smaller assets. With bulls now at the helm and prices entering a crucial supply zone, Ethereum’s actions in the upcoming days could dictate whether altseason genuinely commences or if this rally is merely a reaction to prior bearish positioning. Regardless, ETH’s resurgence has alerted the market.

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