The test of the $3,100 support level for Ethereum sets the stage for a potential altcoin rally

Source: Yellow Original Title: Ethereum’s $3,100 support test sets the stage for a possible altcoin rally

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Ethereum maintains critical support levels

Ethereum remains above the critical Fibonacci support level at $3,100 and the Bull Market Support Band on the 1D chart, a setup that, according to analysts, could trigger renewed interest across the entire altcoin market if the cryptocurrency breaks through the firm resistance near $3,400.

Analyst Luca noted in a recent update that Ethereum’s market structure has strengthened in recent days. The price has held above the Bull Market Support Band on the 1D chart, a level that has historically served as a reliable reversal zone multiple times over the past two months.

ETH also recovered the Fibonacci 0.618 point around $3,100, a threshold often considered critical during corrective phases. Staying above this level usually indicates that buyers are gaining the upper hand.

Recently, the cryptocurrency faced rejection near the Fibonacci 0.5 level, around $3,400, a result Luca described as widely expected. This zone has historically acted as a decision point attracting selling pressure before the market determines its next direction.

Analysts see a potential catalyst for altcoins

Daan Crypto Trades observed that Ethereum continues to advance gradually while respecting the 200-day moving average on the daily timeframe against Bitcoin. This kind of slow rise often indicates underlying strength.

The analyst explained that prolonged consolidations like this tend to resolve with an acceleration phase. If ETH breaks upward with stronger momentum, it could act as a trigger for renewed interest across the entire altcoin market. There is a good chance it will also pull other altcoins along with it.

The setup remains conditional: ETH must stay above the 200-day moving average while Bitcoin remains above $94,000 to maintain the bullish structure on lower timeframes.