Key takeaways:
A bullish pattern on the ETH chart indicates a potential rally to $10,000, with $5,000 as a crucial resistance level.
Analysts highlight that short-term volatility might precede a multi-year bullish expansion for ETH.
A rise to $5,100 could result in $5 billion in liquidations of short positions.
Ether (ETH) continues to present bullish technical signals, with crypto analyst Jelle highlighting a “megaphone pattern” on the weekly chart that targets the $10,000 level.
The megaphone formation, characterized by widening price swings with progressively higher highs and lower lows, often leads to significant rallies upon a confirmed breakout above resistance. However, should momentum stall, the pattern may turn bearish.
Ether’s one-week chart. Source: Cointelegraph/TradingView
The immediate resistance stands at $5,000. A position above this level would liquidate approximately $5 billion in cumulative short positions, potentially sustaining the megaphone rally.
Failure to surpass the $5,000 barrier may lead to a pullback towards the 12-week simple moving average (SMA, blue line) around $3,500 or the pattern’s lower support at $3,000, coinciding with the 25-weekly SMA (orange line). Volume confirmation is vital, as weak participation raises the risk of a false breakout.
Ether exchange liquidation map. Source: CoinGlass
Crypto trader Merlijn emphasized the potential for a bullish breakout, noting a dense sell wall around $5,100, “the kind of level whales dream about.”
The trader anticipates liquidity in this region to act as a magnet, targeting over-leveraged shorts. “Play the hunter, not the hunted,” Merlijn advised, suggesting that whales might drive prices into this liquidity zone.
Related: Ethereum‘s best month ever puts $7K ETH price within reach
Analysts say ETH could stay “bullish for years”
While short-term fluctuations dominate current discussions, technical analyst Jackis argued that ETH remains “insanely bullish for years to come,” highlighting the asset’s recent breakout from a 4.5-year institutional accumulation range.
According to the analyst, the previous four-year cycle effectively concluded in December 2024, paving the way for a new structural expansion phase.
However, Jackis cautions about potential mid-term shakeouts before the next upward movement. ETH has faced multiple rejections from its all-time highs and is currently testing its sixth diagonal trendline resistance, levels that traditionally tend to break after several attempts.
Ether six-hour analysis by Jackis. Source: X
A more significant retest into support, similar to Bitcoin’s $25,000 correction in mid-2023, could incite fear-driven sell-offs before the broader upward trend resumes. The correlation between Bitcoin and Ether should also be monitored.
According to ecoinometrics, despite ETH’s recent outperformance, it remains strongly correlated with BTC. In a post on X, the market analysis platform stated,
“ETH is holding up better than BTC in price terms, but the correlation tells a different story. Over the past five years, ETH’s correlation with BTC has averaged above 0.8 and remains at that level today.”Bitcoin Ether correlation score. Source: Ecoinometrics/X
Jackis underscores that even with near-term corrections, the long-term outlook remains positive. Sustained acceptance above the 2021 all-time highs of $4,880 would signal an immediate continuation.
Related: BlackRock Bitcoin ETF holdings overtake Coinbase, Binance; ETH may be next
This article does not represent investment advice or recommendations. All investment and trading activities carry risk, and readers are encouraged to conduct their own research before making any decisions.
