- Ethereum’s breakout above $4,000 after 1,146 days signals renewed bullish momentum targeting $7,331 in the next leg higher.
- Long-term support near $4,000 and an upward trendline created the foundation for Ethereum’s explosive rally toward $7,331.
- Analysts note Ethereum’s multi-year consolidation breakout could mark the start of a major bullish cycle extending into 2027.
Ethereum is showing explosive strength after breaking above the crucial $4,000 level, marking the end of a three-year accumulation phase. According to analyst Mags on X, Ethereum “broke out above the $4,000 level after 1,146 days of consolidation from its bottom.” The analyst noted that this breakout occurred after three failed attempts, finally succeeding on the fourth try back in August.
Besides, Mags highlighted that Ethereum briefly dipped below $4,000 to $3,800 in a fakeout move before rebounding sharply. “The price finally broke out on the 4th attempt back in August and has been consolidating above the $4,000 area for the past few months,” he wrote.
Expectations of a prolonged rally were fueled by a V-shaped comeback, which confirmed renewed purchasing strength. Technically, the following leg up is aimed at $7,331, which corresponds to the Fibonacci extension level of 1.618, according to Mags.
Multi-Year Technical Formation
According to Mags’ chart, Ethereum’s price climbed from around $1,060 in early 2021 to nearly $4,500 by the end of that year. However, that high point became a strong barrier, leading to a long downturn through 2022. After hitting a low again near $1,060, the market began to recover slowly, forming an upward trendline that guided Ethereum’s steady comeback through 2023 and 2024.
In addition, Ethereum tested the $4,000 level three different times, proving it to be a strong support zone each time. This support, combined with an upward trendline, built pressure that eventually led to a breakout.
Market Sentiment and Positioning
Meanwhile, Castillo Trading on X observed that both Bitcoin and Ethereum have seen “no real re-tests since the lows.” The trader emphasized that this kind of price action “makes many FOMO into the top which will ultimately push us higher.” He cautioned, however, against going “long here with size,” suggesting smaller entries or waiting for potential pullbacks.
