- Ethereum tests $3,800 resistance as weekly chart forms descending broadening wedge, mirroring 2020 setup.
- $2.18B in ETF inflows and 500K ETH whale accumulation support reduced supply and price momentum.
- Breakout could lead ETH toward $8K–$10K cycle top by 2026, backed by Fibonacci and trend projections.
Ethereum (ETH) is showing strength on the weekly chart as it approaches a major resistance level for the third time. The current structure resembles a descending broadening wedge, similar to the setup that preceded the 2020 bull cycle. At the time of writing, ETH was trading at $3,659.
Descending Broadening Wedge Suggests Potential Breakout
Ethereum has formed a descending broadening wedge pattern on the 1-week chart, according to analysis prepared by CryptoBullet. The structure has price compressing between higher lows and lower highs, building pressure near the wedge’s resistance line. The same pattern preceded Ethereum’s 2020 breakout, which led to a strong rally.
The price recently reached a high of $3,812 on July 22, marking a nine-day uptrend before a modest pullback. The current resistance near $3,800 is being tested again, with analysts watching for a clean breakout. A temporary 10–15% correction could occur around this level, but the long-term setup remains intact.
If confirmed, the breakout from this structure could propel ETH toward a projected cycle top in the $8,000 to $10,000 range. Fibonacci extensions and trendline projections align with these targets by mid-to-late 2026.
Institutional Inflows and Whale Accumulation Add Support
According to data from Fundstrat, Ethereum ETFs in the U.S. have seen over $2.18 billion in inflows within one week. These investments have contributed to a decline in exchange-held ETH reserves, which supports the case for reduced supply pressure.
Whale wallets have also accumulated more than 500,000 ETH during July. One address reportedly purchased $50 million worth of Ethereum at an average price of $3,715. On-chain activity shows this trend continuing as retail interest begins to pick up.
Ethereum’s expanding Layer 2 ecosystem and growing corporate adoption are reinforcing long-term market strength. With both the technical and on-chain indicators in line, Ethereum is in a ready position to make a possible shift to fresh all-time highs.
