- Ethereum breaks a 3-year downtrend, confirming a major long-term bullish reversal.
- Analysts project ETH could reach $7K–$8K by 2026 as momentum and liquidity strengthen.
- Current retest near $3.8K–$3.9K signals renewed buyer control and setup for next rally.
Ethereum (ETH) has officially broken above a three-year descending trendline that has guided its price since 2021. The breakout marks a turning point in Ethereum’s long-term structure, supported by higher lows and rising investor participation. Analysts consider this the start of a wider bullish continuation period that stretches to 2026.
3-Year Downtrend Broken
Ethereum’s weekly data confirmed a breakout above the multi-year resistance that capped price action since the 2021 peak. The asset traded near $3,882.94, recording a 1.27% daily increase, with a market capitalization of $468.66 billion, according to CoinMarketCap.
The breakout followed a regular ascending triangle formation that developed between 2021-2025 with repeated resistance rejections and higher lows suggesting constant buying power. The resistance line of the top was the 2021 high, and the downward trendline was rising steadily, and this creates a strong ascending base.
Ethereum’s move beyond this range led to a rally near $4,500 before a brief pullback, after which it stabilized above $3,800. According to an analysis prepared by Ardizor, the breakout structure suggests potential targets between $7,000 and $8,000 by 2026. The trend is also backed by the increasing momentum and stable liquidity, which attest to the fact that the asset has left the long-term correction period.
Bullish Retest in Progress and Massive Pump Incoming
Following the breakout, Ethereum entered a bullish retest phase near the $3,800–$3,900 zone, consistent with historical continuation patterns. Trading data shows strong volume during upward moves, supported by both institutional and retail interest. Relative Strength Index (RSI) was around 47 which indicates neutral momentum with buyers gaining momentum.
According to an observation by Matthew Dixon, “ETH gives a clear and encouraging picture and we would expect correlation across much of the rest of the market.” He explained that Ethereum completed an ABC correction following its wave 3 high, with the current structure “coiling for a powerful break upwards soon.”
The short-term chart displays completed Elliott Wave formations, showing five upward waves followed by an ABC correction. The rebound from the $3,600 support zone supports projections toward $4,400, reinforcing Ethereum’s ongoing bullish retest and the potential for a major upward continuation through 2025.
