- Ethereum consolidates in a bullish pennant as higher lows and declining volume point to an imminent breakout above $2,800.
- Rising support at $2,450 holds firm while traders eye a breakout move targeting $3,600–$3,800 based on flagpole projections.
- A descending wedge with repeated $2,475 bounces positions Ethereum for a sharp rally if $2,600 resistance gives way.
Ethereum is showing signs of technical strength while consolidating in a classic bullish pennant pattern on its daily chart. Analysts are tracking support and resistance levels closely as price compression nears an apex.
Source: Post on X
In the above analysis by Merlijn The Trader, Ethereum’s recent surge from below $2,200 to above $2,500 created a strong flagpole. A triangular consolidation followed, with price action forming converging trendlines between $2,450 and $2,800. The daily chart now displays tightly coiled movement, typically seen before explosive breakouts.
In the shared analysis, Merlijn emphasizes declining volume during consolidation, a classic hallmark of a bullish pennant. Ethereum has continued to form higher lows, indicating underlying buyer strength as the ascending trendline holds. A confirmed breakout above $2,800 could trigger a rapid move toward $3,600–$3,800 based on measured projections.
Analyst Eyes Breakout Above Key Resistance
Momentum is gradually building toward a breakout as ETH approaches the tip of the pattern. According to market analyst Merlijn The Trader, Ethereum’s structure remains bullish as long as support holds above $2,450. Continued defense of this trendline reinforces accumulation strength, with $3,000 acting as psychological resistance. The target range between $3,600 and $3,800 mirrors the flagpole’s height, added to the breakout point.
Compression Builds as Analysts Highlight Trendline Defense
Source: Post on X
BATMAN, another market analyst, presents a descending wedge scenario with ETH repeatedly bouncing off the same rising trendline. A projected breakout path could drive Ethereum toward $3,100 if resistance at $2,600 breaks. BATMAN’s view aligns with Merlijn’s in calling attention to reduced volume and price rejection near $2,475, suggesting underlying strength.
In addition to the previous points, market observers on X are tracking this pivotal zone closely. Many analysts warn that if ETH breaks below its current support, the price could dip to $2,000. Maintaining the trendline sets the stage for a breakout above $3,000, turning this zone into a key decision point. Ethereum continues to compress between resistance and support, and analysts are watching the next move with heightened anticipation.
