Ethereum Chart Signals Bullish Trend: Potential Pathway to $5,000

Ethereum has recently been trading just above $3,300 per ETH, experiencing a gradual bullish rise over the past week. After a prolonged period of volatility and unsuccessful attempts to maintain levels above $3,000, the monthly chart structure now appears bullish, warranting the attention of traders.

Key Takeaways

Ethereum is showing a bullish trend, currently trading above $3,300.
A bullish pennant pattern is forming, indicating potential strong upward momentum towards $5,000.
Key resistance levels to watch are $3,300 and $3,600, with the critical zone around $5,000.
Post-breakout volatility is expected, with projections suggesting a target of up to $8,400.

Ethereum

A recent technical analysis shared by Merlijn The Trader on X indicates that Ethereum is nearing a phase where consolidation could transition into a strong upward momentum, with $5,000 identified as a crucial resistance level.

Bullish Pennant Indicates Upcoming Positive Momentum

The technical analysis from Merlijn illustrates a bullish pennant forming on Ethereum's monthly timeframe. This pattern indicates that the price action has been narrowing between a rising support line and a descending resistance line, a formation that has been consistent since 2021.

In 2025, Ethereum briefly surged past the pennant's upper boundary, nearing the $5,000 mark before momentum waned, resulting in corrective moves. Currently, the price seems to be returning to this former resistance line, which has become an essential focal point. Ethereum is now retesting the upper trendline of this bullish pennant for a potential final upward movement.

According to this analysis, the first significant barrier for Ethereum to overcome is around $3,300. A successful breakout above this level may pave the way to $3,600, a historical pivotal point from previous rallies. However, the most critical zone lies around the all-time high of $5,000 from August 2025. If Ethereum surpasses this zone, it could unlock substantial bullish momentum, benefiting throughout most of 2026.

How Might This Breakout Unfold?

Merlijn’s chart provides a comprehensive roadmap for the potential price movements after Ethereum breaks above the pennant's upper trendline. The initial step in this projection involves pushing past $3,600, followed by a crucial test around the $5,000 mark. Once Ethereum breaks through the $5,000 level, new price highs may be within reach.

It’s important to note that this breakout is anticipated to entail volatility and retests; the price movement is unlikely to be linear but rather will likely trend upward if the pennant theory holds true.

From the $5,000 point, the outlook transitions into a two-phase expansion. The first phase suggests an aggressive rally, potentially reaching up to $6,000, followed by a sharp dip to around $4,000, which would lead into another recovery phase before the next significant upward move. The larger price target indicated on the chart suggests that Ethereum could ultimately soar to approximately $8,400.

Ethereum
ETH trading at $3,368 on the 1D chart | Source: ETHUSDT on Tradingview.com