Ethereum is holding above the critical $3,100 Fibonacci support level and the 1D Bull Market Support Band, a setup that analysts say could trigger renewed interest across the altcoin market if the cryptocurrency breaks through firm resistance near $3,400.

What Happened: ETH Holds Critical Support Levels

Analyst Luca noted in a recent update shared on X that Ethereum's market structure has strengthened over the past several days.

The price has maintained its position above the 1D Bull Market Support Band, a level that has served as a reliable reversal zone multiple times over the past two months.

ETH also reclaimed the 0.618 Fibonacci point of interest around $3,100, a threshold often viewed as critical during corrective phases. Holding above it typically signals buyers are gaining the upper hand.

The cryptocurrency recently faced rejection near the 0.5 Fibonacci level around $3,400, an outcome Luca described as largely expected. This area has historically acted as a decision point that attracts selling pressure before the market determines its next direction.

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Why It Matters: Analysts Eye Altcoin Catalyst

Daan Crypto Trades observed in a separate post that Ethereum continues to advance gradually while respecting the Daily 200-day moving average against Bitcoin. This type of slow grind often signals underlying strength.

The analyst explained that prolonged consolidations like this typically resolve with an acceleration phase.

Should ETH break out with stronger momentum, it could serve as a trigger for renewed interest across the altcoin market. "There's a good chance it pulls other alts with it as well," analyst said.

The setup remains conditional: ETH must hold the Daily 200MA while Bitcoin stays above $94,000 to maintain the broader low-timeframe bullish structure.

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