Ethereum strongly breaks through $3,850! Analysts predict a surge to a new high of $5,000 this season.

Ethereum (ETH) has recently made a strong rebound, breaking through the key resistance level of $3,850, reigniting market enthusiasm. With favorable information from U.S. policies and a resonant technical trend, multiple analysts predict that ETH is expected to sprint to a new high of $5,000 within this season. Will this round of market activity repeat historical breakthroughs? Investors are closely following Ethereum's next move.

Favourable Information policy drives ETH intraday surge

This Thursday, Ethereum surged 6.3% in a single day, retesting the $3,850 level. This wave of increase was mainly influenced by U.S. President Trump's plan to sign an executive order that will allow 401(k) retirement plans to invest in cryptocurrencies, private equity, and other alternative assets, opening new doors for a $12.5 trillion industry. The favourable information has brought strong upward momentum to ETH.

The technical aspect has challenged the key resistance level three times, and a breakthrough is imperative

Since mid-July, ETH has been oscillating between the $3,400 and $3,800 range, failing to challenge the upper limit of the range three times. Last week, ETH briefly broke through $3,941, setting a new seven-month high, before retreating to the $3,350-$3,400 support area. Recently, it rebounded again and broke through $3,800 this week, with market sentiment clearly strengthening. Analyst Alex Clay pointed out that the 18-month descending expanding wedge on the ETH daily chart is approaching the upper boundary, and the breakout signal is becoming increasingly evident.

Historical trend repeats itself, a $5,000 target is expected

(Source: Trading View)

Analyst Ted Pillows emphasized that the current trend of ETH is highly similar to the breakout market from May to June. At that time, ETH experienced a false breakout and a low point retest after multiple tests of the resistance level, ultimately breaking through the range strongly and setting a new annual high. If history repeats itself, ETH is expected to quickly rally to 4,000 USD after breaking through the 3,850-3,900 USD area, and challenge the 5,000 USD mark before the end of this season.

Ethereum's dominance is rising, and market funds are flowing in faster

(Source: Trading View)

Rekt Capital pointed out that Ethereum Dominance (ETH Dominance) has broken 12% for the first time in five years, indicating that funds are accelerating into ETH. In July 2020, ETHDOM consolidated in the 12%-16% range for several months, followed by a strong breakout in 2021. Currently, ETHDOM struggles to return to consolidation, signaling that the market is entering a new wave of upward movement.

Conclusion

Ethereum has strongly broken through the key resistance level of $3,850 under the resonance of favourable information and technical aspects, with bullish market sentiment surging. Multiple analysts predict that ETH is expected to sprint towards a new high of $5,000 within this quarter. Investors should closely follow the subsequent price momentum and changes in dominance to seize potential trading opportunities.