Ethereum Approaches Bullish Breakout, Eyes $5,000 Target

Ethereum is trading above $3,300, showing a slow bullish trend. The monthly chart structure suggests a potential significant price movement.

A technical analysis by Merlijn The Trader indicates that Ethereum is nearing a consolidation break, with $5,000 identified as a critical point.
A bullish pennant pattern on Ethereum’s monthly chart shows price compression between rising support and descending resistance lines.
Ethereum briefly surpassed the upper boundary of this pennant in 2025, nearing $5,000 before correcting. It is now retesting the trendline for another upward move.
The initial barrier is around $3,300, leading towards $3,600 if broken. The crucial zone is the August 2025 high at $5,000.
Breaking above $5,000 could trigger further bullish momentum, potentially reaching new highs.

Potential Breakout Scenario

Merlijn’s analysis outlines a progression after breaking out of the pennant, starting with surpassing $3,600 and testing $5,000 significantly.
The breakout may involve volatility and retests but is expected to resolve higher if the pennant holds.
From $5,000, Ethereum might rally to $6,000, dip to $4,000, then recover to target $8,400 eventually.

Ethereum