Main Points:
A bullish trend on the ETH chart forecasts a surge to $10,000, with $5,000 identified as the key resistance level.
Experts indicate that short-term fluctuations may occur prior to ETH entering a multi-year upward phase.
A rise to $5,100 could trigger approximately $5 billion in liquidations of short positions.
Ether (ETH) is currently showing bullish technical indicators, with crypto analyst Jelle noting a “megaphone pattern” on the weekly chart targeting $10,000.
This megaphone, or broadening formation, depicts expanding price movements with progressively higher highs and lower lows. A confirmed breakout above resistance typically leads to significant rallies, though the structure may also turn bearish if momentum diminishes.
At present, the immediate resistance is set at $5,000. Surpassing this level would result in an estimated $5 billion in cumulative short position liquidations, potentially fueling the megaphone rally.
Conversely, a failure to exceed the $5,000 mark could lead to a retreat toward the 12-week simple moving average (SMA, blue line) around $3,500 or the lower support of the pattern at $3,000, which aligns with the 25-week SMA (orange line). Validating volume is crucial, as low participation heightens the risk of a false breakout.
Crypto trader Merlijn highlighted the potential for a bullish breakout and noted that ETH encounters a substantial sell wall near $5,100, a level that “whales dream about.”
The trader anticipates that liquidity in this area will act as a magnet, burning over-leveraged shorts. “Be the hunter, not the hunted,” Merlijn advised, suggesting that whales could drive the price into that liquidity zone.
Related: Ethereum’s most successful month ever sets the stage for a $7K ETH price
Experts believe ETH could remain “bullish for years”
While short-term swings dominate discussions, technical analyst Jackis contended that ETH is “incredibly bullish for many years ahead,” following its breakout from a 4.5-year institutional accumulation phase.
According to the analyst, the previous four-year cycle ended in December 2024, signaling the beginning of a new structural growth phase.
However, Jackis cautions about potential mid-term shakeouts before the next upward movement. ETH has encountered multiple rejections at its all-time highs and is currently challenging its sixth diagonal trendline resistance, levels that historically tend to break after repeated trials.
A deeper retest into support, akin to Bitcoin’s $25,000 correction in mid-2023, could elicit fear-driven sell-offs before the overall uptrend resumes. The relationship between Bitcoin and Ether should also be monitored.
According to ecoinometrics, despite ETH’s recent outperformance, it remains significantly correlated with BTC. In an X post, the market analysis platform noted,
“ETH is doing better than BTC in terms of price, but the correlation reveals a different picture. Over the past five years, ETH’s correlation with BTC has averaged above 0.8, and it currently remains around that level.”
Jackis emphasizes that even in the event of short-term corrections, the long-term outlook remains robust. Continued acceptance above the 2021 all-time highs of $4,880 would indicate immediate continuation.
Related: BlackRock Bitcoin ETF holdings surpass Coinbase, Binance; ETH could follow
This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should conduct their due diligence prior to making a choice.
