Ethereum is at a critical stage where traders await a potential breakout that could push the price towards $10,000. This article discusses the current market situation.
Breakout Pattern Analysis
Traders point to a bullish megaphone pattern that could lead to significant price swings. This pattern, also known as a broadening formation, reflects widening price movements with progressively higher highs and lower lows. A breakout above $5,000 is essential to liquidate approximately $5 billion in short positions, potentially accelerating further growth. Should Ethereum fail to maintain this level, analysts warn of a retreat to $3,500, coinciding with the 12-week simple moving average.
Trader Commentary
Crypto trader Merlijn noted that Ethereum faces a dense sell wall at $5,100. He described it as 'the kind of level whales dream about.' According to Merlijn, liquidity around this level could act as a magnet, forcing heavily leveraged short positions to close. He suggested to 'play the hunter, not the hunted,' implying that large investors may actively target these areas to drive prices higher.
Long-term Outlook and Possible Corrections
While some analysts focus on immediate resistance, others look at the broader picture for Ethereum. Technical specialist Jackis argues that ETH is 'insanely bullish for years to come,' noting that the asset has just exited a multi-year accumulation range. He suggests that the previous cycle, which began in 2020, effectively ended in December 2024, paving the way for a new phase of expansion. Jackis, however, cautions against expecting a linear ascent, as Ethereum has faced repeated rejections at record highs and is currently testing its sixth diagonal resistance line.
Analysts agree that the long-term technical structure for Ethereum remains intact, even amid potential short-term volatility. All eyes are on the $5,000 level, a battleground that could determine whether Ethereum pushes toward five digits or reverts to a consolidation phase.
