- Etheremas surged out of a multi-year expansion wedge and over the $4,000 obstacle, and the next macro bullish cycle started.
- The recent consolidation of over 4,000 gains momentum as demand surpasses the supply and the current position of $ETH is set to shoot to 10-K levels.
- Exchange reserves are all time lows and whales and institutions are buying the dips, creating scarcity to support the potential upside of Ethereum.
Ethereum is now trading above the 4,000 price point with a significant breakout, and it is establishing a bullish formation, which indicates additional gains are possible.
Breakout From Multi-Year Wedge
Ethereum ($ETH/USD) has completed a long-term breakout after years of trading within a broadening wedge structure. The price recently surged past the wedge resistance and the key $4,000 level, marking a transition from accumulation to expansion. According to Wolf , this breakout sets the stage for Ethereum’s next growth cycle.
The current consolidation above $4,000 reflects a textbook pattern seen after major structural shifts. This sideways movement may appear uneventful, but it typically strengthens market positioning. Wolf noted that Ethereum often grinds in ranges longer than expected, a behavior that frustrates traders but builds momentum.
The measured move projection from the breakout points toward levels above $10,000. This target aligns with Fibonacci extensions and cycle expansion models, suggesting a continuation of the bullish trend once consolidation ends.
Sideways Grind Building Market Pressure
Wolf emphasized that the present price behavior is not weakness but a constructive consolidation. Ethereum is coiling within a defined box above resistance, a phase often seen before expansion. This structure reflects strong demand holding price above critical levels.
The consolidation period is viewed as a patience zone for investors. Historical behavior shows that Ethereum prefers prolonged sideways action before initiating sharp rallies. Such patterns typically shake out short-term participants while positioning long-term holders for the next upward move.
Market sentiment around this consolidation points to potential for strong acceleration once sellers are absorbed. With demand outweighing supply, Ethereum could transition rapidly into price discovery beyond the $10,000 mark.
Supply Shock Strengthening Bullish Outlook
Merlijn The Trader highlighted another factor supporting the bullish narrative: declining exchange reserves. Ethereum reserves on exchanges recently fell to their lowest levels in years, reducing the amount available for sale.
This supply shock is reinforced by consistent accumulation from whales and institutional investors. According to Merlijn, every dip is quickly absorbed, limiting downward pressure and increasing scarcity. Such behavior reflects growing confidence in Ethereum’s long-term trajectory.
Less Ethereum available on exchanges creates conditions that favor upward movement once demand accelerates. If current trends persist, Ethereum could face reduced resistance on its path toward five-digit valuations.
