Ethereum is again to buying and selling simply above $3,300 per ETH in a sluggish bullish extension over the previous week. After months of huge swings and failed follow-throughs above $3,000, the construction on the month-to-month timeframe chart is starting to look bullish in a manner that merchants ought to take severely.
A current technical breakdown shared by Merlijn The Dealer on X exhibits that Ethereum is approaching a second the place consolidation might give strategy to forceful enlargement, with $5,000 as crucial inflection level.
Bullish Pennant Says Bullish Momentum About To Be Unlocked
The chart exhibiting the technical evaluation from Merlijn exhibits a bullish pennant forming on Ethereum’s month-to-month timeframe. This bullish pennant exhibits that value motion has been compressing between a rising assist line and a descending resistance line, and this has created a narrowing construction since 2021.
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Ethereum briefly pushed above the higher boundary of this pennant in 2025, rallying to simply beneath the $5,000 mark earlier than momentum light and corrective strikes adopted. Since then, value motion seems to be gravitating again towards the previous resistance line, now performing as a key space of curiosity. Because it stands, Ethereum is now retesting the higher trendline of this bullish pennant for a remaining upward transfer.
Primarily based on this projection, the primary main barrier for Ethereum to interrupt is round $3,300. A clear break above that stage would possible open a path towards $3,600, an space that beforehand acted as a turning level throughout previous rallies. Probably the most consequential zone, nevertheless, is across the August 2025 all-time excessive of $5,000. A break above this zone would unlock bullish momentum primarily based on the bullish pennant and play out within the majority of 2026.
How Can This Breakout Play Out?
Merlijn’s chart doesn’t cease on the breakout set off as soon as it breaks above the higher trendline of the pennant. It sketches a full highway map for the way the transfer might unfold as soon as Ethereum leaves the pennant. Step one in that projection is a push above $3,600 earlier than a extra significant take a look at round $5,000. As soon as Ethereum is ready to break above $5,000, then the door is open for brand new value highs.
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Nevertheless, the breakout is anticipated to return with volatility and retests, not a straight line upward, however nonetheless resolves larger if the pennant thesis holds.
From $5,000, the projection turns right into a two-stage enlargement. The primary stage exhibits a power transfer, the place Ethereum goes on a rally to as excessive as $6,000, then chops by way of one other sharp dip to $4,000 and one other restoration sequence earlier than the bigger leg larger. The bigger leg, larger projected on the chart, factors to $8,400 as the ultimate value goal zone for Ethereum.
Featured picture from Getty Pictures, chart from Tradingview.com
