Ethereum’s Accumulation Phase Nears Breakout, Can It Hit $4K Soon?

• Ethereum is consolidating in a 13-month range, with key support holding steady, signaling an extended accumulation phase.
• Historical trends suggest accumulation phases often lead to breakouts, with analysts eyeing a potential $4,000 target in Q2.
• ETH’s structure remains bullish, with buyers defending support; a breakout above $4,050 could trigger a strong rally.

Ethereum is within a 13-month accumulation range with price action hovering near critical support. According to analyst IamCryptoWolf, ETH has returned to the lower boundary of its re-accumulation zone. The price movement suggests a prolonged consolidation before an eventual breakout. The analyst predicts Ethereum could revisit $4,000 in Q2.

Ethereum’s Sideways Movement Signals Accumulation

Ethereum has moved within a given range of $2,300 to $4,050 over a period of over a year. The present price is at about $2,493, representing a recent drop of 6.39%. However, history indicates that longer consolidation periods always precede good bull breakouts.

Ethereum’s market structure remains intact. The price has established higher lows within the range, forming an ascending accumulation pattern. These repeated tests of resistance and support levels indicate a controlled accumulation phase rather than a bearish downtrend.

Key Levels and Breakout Potential

Ethereum’s price history suggests that once accumulation phases conclude, substantial upward momentum follows. The last 18-month accumulation period led to a breakout and a strong rally. A similar pattern could unfold if ETH surpasses the $4,050 resistance.

Moreover, the current support level of $2,300 to $2,650 has been maintained. Buyers continue to come in at those levels, preventing more selling. If Ethereum can maintain this support, the possibility of an upward breakout increases.

However, a drop below this support range may lead to a bearish scenario. Breaking down would invalidate the current structure and push Ethereum toward lower levels. Nevertheless, as long as ETH stays above support, the probability of a move toward $4,000 remains high.