While Ethereum (ETH) attempts to turn a crucial level into support, some analysts have shared a bullish outlook for the cryptocurrency, which could send its price above the $4,000 barrier in the first quarter of 2026.<\/p>\n
On Monday, Ethereum broke above the $3,200 barrier for the first time in nearly a month, hitting a four-week high of $3,259. The cryptocurrency has seen a 8.3% surge from the crucial $3,000 level since Friday, consolidating above the $3,100 level over the weekend.<\/p>\n
Now, the King of Altcoins is trying to hold the key resistance level and turn it into support. Amid this performance, some market observers shared a potential setup that could lead to a significant<\/a> rally during the next three months.<\/p>\n In an X post, analyst Niels affirmed<\/a> that Ethereum\u2019s quarterly close in the red is \u201cnot as bearish as it looks.\u201d Notably, the altcoin recorded its worst Q4 in six years after closing the quarter with a negative return of 28.28%, according to CoinGlass data.<\/p>\n This marks ETH\u2019s first negative Q4 close since 2022, and its worst end-of-year performance since 2019, when it registered a negative return of 28.9%. Nonetheless, Niels highlighted that this opens the door for an \u201cinteresting\u201d setup ahead of the altcoin\u2019s expected seasonality.<\/p>\n \u201cHistory tells an interesting story: every single time ETH has finished Q4 in the red, the next Q1 has closed green,\u201d the analyst explained, asserting that \u201cyear-end weakness has usually acted as a reset, not a reversal.\u201d<\/p>\n Per the post, the end-of-year leverage flush and sentiment cooling have previously enabled<\/a> Ethereum to start the new year \u201cfrom a cleaner base,\u201d which has allowed the altcoin to register quarterly returns of up to 52% in recent years.<\/p>\n \u201cIf that pattern holds, Q4 wasn\u2019t the warning; it was the setup heading into Q1,\u201d he suggested.<\/p>\n As the price records an 11% weekly surge, analyst Ted Pillows pointed<\/a> out that the cryptocurrency is about to face an important zone that has served as resistance for nearly two months.<\/p>\n Since the early November pullback, the largest altcoin by market capitalization has been trading between the $2,700-$3,400 price range, experiencing strong resistance around the $3,000 and $3,200 levels.<\/p>\n Now that the mid-zone of the range has been momentarily reclaimed, ETH must hold its momentum<\/a> and turn the upper boundary into support. \u201cA reclaim of this level will pump Ethereum towards the $3,800-$4,000 level,\u201d where the next major resistance is located, Ted explained on Monday morning.<\/p>\n On the contrary, a rejection from this resistance zone could send the ETH price toward the $3,000 support, while risking a longer consolidation within its two-month range.<\/p>\nEthereum Prepares For 30% Breakout<\/h2>\n