Ethereum (ETH) is attempting to reclaim a crucial area as price nears its 2021 all-time high (ATH). However, an analyst suggested that this week\u2019s performance will be key for the long-awaited price discovery rally.<\/p>\n
Over the past week, Ethereum has had a remarkable performance, jumping nearly 30% to a multi-year high of $4,750 on Wednesday afternoon, just 3.3% away from its ATH of $4,848, recorded in November 2021.<\/p>\n
Notably, the King of Altcoins has seen a 40% recovery from the start-of-month pullback, finally breaking<\/a> from its local range and reclaiming the crucial $4,000 barrier last Friday. Since then, ETH has continued to soar, reclaiming the $4,400-$4,500 area on Tuesday.<\/p>\n The cryptocurrency has been hovering between $4,600-$4,750 throughout the day, while attempting to break out of this range to potentially tackle<\/a> \u201cthe final boss\u201d of resistance around the $4,800 area.<\/p>\n Analyst Rekt Capital discussed<\/a> ETH\u2019s recent performance, highlighting that it had successfully broken out of its multi-year resistance and turned it into support after its post-breakout retest at the start of the month, which has enabled the current move to the final Macro Range, between $3,762 and $4,631, that could precede new highs.<\/p>\n However, he noted that the altcoin\u2019s price \u201chistorically upside wicked beyond this final major Weekly\/Monthly resistance for 3 straight weeks in a row\u201d last cycle.<\/p>\n As the analyst explained, in late 2021, Ethereum was rejected from the $4,631 resistance after hitting its ATH and attempting to turn it into support in the weekly timeframe, which was followed by an 80% retracement.<\/p>\n This suggests that \u201chow ETH treats $4,631 over the coming days will be pivotal\u201d for the cryptocurrency\u2019s upcoming performance, as it could potentially hit a new ATH but get ultimately rejected. Therefore, weekly closing above the Macro Range breakout<\/a> level is crucial to \u201cgo against the grain of history.\u201d<\/p>\n Holding the $4,630 mark on the first attempt \u201cwould be a huge signal of strength,\u201d the analyst asserted, but warned that \u201cmore often than not, price tends to get rejected but in a shallower manner.\u201d<\/p>\n If Ethereum fails to reclaim this level, the King of Altcoins could see an 18% drop<\/a> to the Macro Range lows, around the $3,762 support, which would fulfill a key recently opened CME Gap on ETH\u2019s chart.<\/p>\n The Weekly CME gap, created this week, sits between the $4,091-$4,261 area, leading Rekt Capital to suggest that a more volatile retest of the CME gap could briefly send the price to the Macro Range lows.<\/p>\n Meanwhile, if Ethereum reclaims the final major weekly resistance as support, ETH\u2019s price discovery rally above the $5,000 mark will be next.<\/p>\nIs A Rejection Next?<\/h2>\n