As the crypto market recovers from the end-of-September correction, Ethereum (ETH) is attempting to reclaim the crucial $4,200 area. Some analysts affirmed that the altcoin\u2019s bounce signals that a new leg up could be coming in the next few weeks.<\/p>\n
On Monday, Ethereum continued<\/a> to recover from the recent market pullback, surging nearly 6% from Sunday\u2019s Lows toward a crucial barrier. Last week, the King of Altcoins recorded a sharp drop below the $4,000 level for the first time since early August, recording an eight-week low of $3,815 on Thursday afternoon.<\/p>\n Over the weekend, the cryptocurrency reclaimed the $4,000 barrier before surging to the crucial $4,100 mark on Sunday afternoon. This level served as a strong resistance throughout the past two years, as it represents the cycle\u2019s previous high and a key bounce area during the Q3 rally. It also marks the lower boundary of its local $4,100-$4,800 range.<\/p>\n Market Watcher Daan Crypto Trades noted<\/a> that the weekly candle on ETH\u2019s chart closed above this level after \u201ca solid effort by the bulls and a late Sunday push.\u201d He added that it remains important to hold this area on the higher timeframes to target the range highs.<\/p>\n In the daily timeframe, the trader considers Ethereum has \u201cnot the worst look\u201d as the recent reclaim shows a clear invalidation of the range breakdown and a potential recovery continuation<\/a>. Daan also suggested that the cryptocurrency could be \u201ctaking one out of BTC\u2019s playbook,\u201d and be preparing for a massive new leg up following the range consolidation and deviation.<\/p>\n Similarly, Bluntz affirmed<\/a> that ETH\u2019s wave 4 on the daily timeframe \u201clooks like it\u2019s over with a leg higher into ath yet to come.\u201d However, the analyst considers that the next all-time high (ATH) breakout won\u2019t be as \u201csensational\u201d as many believe, suggesting the $5,500 area as the main target.<\/p>\n Multiple market watchers highlighted a potential Power of Three (Po3) setup on Ethereum\u2019s chart, signaling that the recent pullback was part of the second stage, manipulation, and the cryptocurrency is ready for the third phase, expansion.<\/p>\n Meanwhile, Merlijn the Trader affirmed<\/a> that Ethereum is displaying a similar setup that preceded the May and July rallies. At the time, ETH broke down from its local range during a liquidity grab, sending the Relative Strength Index (RSI) indicator to oversold territory.<\/p>\n \u201cThis is the exact setup that birthed every violent reversal. Strong hands know it. Weak hands fold,\u201d the trader affirmed. Additionally, he noted that the cryptocurrency could be repeating<\/a> the late Q2 script\u2019s timeline.<\/p>\n Per the post, Ethereum saw a 66-day consolidation between the May breakout and the next pump in July. During this period, the second-largest cryptocurrency saw a price fakeout below the range around the 45-day mark before breaking out 20 days later.<\/p>\n Last week\u2019s correction below the local range occurred 46 days into the accumulation period, suggesting that a new breakout<\/a> and leg up could come in the first half of October. \u201cWe\u2019re at day 51. The longer the squeeze\u2026 The harder the detonation,\u201d Merlijn stated.<\/p>\nETH\u2019s Next Leg Up Two Weeks Away?<\/h2>\n