- Ethereum’s breakout from a four-year range signals the next phase after its historic 54X rally during the last market cycle.
- Long accumulation periods, especially with tightening supply and an increase in institutional involvement, typically send signals for explosive moves in the market after great drawdowns.
- The recent breakout follows historic patterns that have moved Ethereum from periods of consolidation and into very rapid growth during previous market cycles.
Ethereum has now completed a long consolidation period, and many are talking in the market about a possible extended rally. Recent developments suggest growing institutional interest and an improving technical picture.
Four Years of Consolidation Ends
Between 2021 and 2025, Ethereum traded in a wide range between $1,000 and $4,000. This period followed its 54X surge from the 2018 cycle bottom to the 2021 peak. The sideways movement reflected steady accumulation, with strong holders buying from weaker ones. Importantly, price action maintained higher lows compared to the 2018 bear market, showing a structurally stronger market environment.
Merlijn The Trader, in a recent chart analysis, described this phase as a four-year charging period. He noted that the breakout marks the start of a potentially much larger move, suggesting that past performance could offer clues about future trajectories.
Breakout Setup and Price Projections
The 2025 breakout from the multi-year range positions Ethereum for an upward expansion. Historical patterns show that such breakouts can lead to rapid gains when supply tightens and demand builds. Merlijn The Trader speculated that if Ethereum repeats even a fraction of its last cycle multiplier from the $4,000 level, prices could reach $20,000 to $40,000, with an extended projection near $51,000.
The prior 54X rally was driven by rising DeFi adoption, NFT growth, and institutional participation. Market observers are watching closely to see whether similar catalysts will drive the next phase.
Institutional Inflows Strengthen Momentum
Cas Abbé reported that on August 11, spot Ethereum ETFs attracted $1.02 billion in inflows, a record for a single day. This resulted in the ETH surging to the highest point it has been in more than two years, 4,366. Abbe opined that this is large-scale positioning and not the kind of retail speculation.
If Bitcoin is able to hold its recent highs and capital rotation continues, Ethereum could lead the next market push. Experts are encouraging, as they believe a technical breakout and institutional inflows position the market for movement, and the market could possibly allow for an altcoin rally in the near future.
