- Ethereum nears a pivotal breakout above $3,600, signaling potential for a rally to $6,600 amid wedge-pattern resolution.
- Reaccumulation under $2,705 shows bullish momentum, but failure to hold $2,465 could test $2,200, emphasizing risk management.
- RSI and higher lows align with Ethereum’s recovery, with traders eyeing $3,800 as a launchpad toward $5,000–$10,000 levels.
Ethereum is flashing strong bullish signals after rebounding from long-term support within a broadening wedge formation. Market participants are now closely monitoring a potential breakout above $3,600 that could trigger a macro move.
Source: Bitcoinsensus
As we can see from the post above, one bullish analysis Bitcoinsensus has presented revolves around a rare chart formation. Ethereum is currently respecting a right-angled descending broadening wedge that stretches back to Q1 2024. This expanding structure, marked by lower lows and capped resistance near $3,600, has historically preceded powerful trend ignitions.
According to the expert, Ethereum has now entered its third wave of recovery after rebounding from the descending support trendline. These rebound phases reflect growing bullish strength, with each rejection building tension beneath the horizontal resistance. The most recent bounce shows increased acceleration, with price reclaiming higher lows toward the wedge ceiling.
This setup presents a high-stakes inflection point, as past rejections have aligned precisely with the upper resistance line. A clean breakout and close above this zone would confirm the wedge resolution. The analyst forecasts a price target toward $6,600 if confirmation occurs, matching previous wedge behavior and projected Fibonacci extensions.
Reaccumulation and Compression Signal a Mid-Term Pivot
Wick, another Chart Connoisseur, has provided insights that offer a slightly more measured perspective on Ethereum’s current behavior. In his view, Ethereum has already completed a Stage 2 breakout from a base near $1,900 and is now consolidating gains. The current range-bound zone between $2,465 and $2,705 signals reaccumulation, not exhaustion.
Source: Wick
The presence of a parabolic SAR below the price and a positive-sloping moving average reinforces the bullish structure. Ethereum continues to build higher lows within the shaded channel, which suggests accumulation beneath resistance. Volatility compression within this range typically precedes directional moves, especially when paired with continued support retention.
Taking this idea to the next level uncovers Ethereum’s potential to sustain its bullish trend once the $2,705 barrier is flipped. Yet, there’s more to address before concluding, as failure to hold $2,465 could expose downside toward $2,200. Still, the current price structure remains firmly in bull territory.
Final Outlook: Pressure Builds, Analysts Watch for Confirmation
Looking at it from another angle reveals even broader sentiment shifting toward a macro rally. Pattern Prophets note that Ethereum tapped a key “make-or-break” zone before surging upward, setting the stage for possible long-term gains. Analysts now eye the $3,800 zone as a springboard toward $5,000–$10,000 levels if breakout strength is sustained.
Momentum indicators such as RSI and trendline support reclaim signal that bulls are preparing for a larger move. The sentiment among traders is split; some see a powerful rally forming, while others wait for confirmation. Regardless, Ethereum remains at a pivotal moment, trapped within the structure, but ready to run.
