Ethereum Shows Potential for Breakout Toward $3,834 Following Bullish Continuation Patterns

• Ethereum has surged past the $2,556 mark, signaling robust bullish momentum with key technical patterns pointing toward a breakout target near $3,834.

• The cryptocurrency’s price action mirrors historical liquidity grabs, notably resembling the 2017 recovery, underscoring strong market conviction and volume support.

• According to COINOTAG analyst Merlijn, Ethereum’s current structure forms a compelling bull flag and falling wedge, with critical resistance at $2,800 needing to be surpassed to unlock further gains.

Ethereum breaks above $2,556, forming bullish continuation patterns with a $3,834 breakout target now in sight, reflecting strong volume and historical recovery signals.

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Ethereum’s Bull Flag and Falling Wedge Patterns Signal Potential Breakout

Ethereum’s recent price movements have formed two significant bullish continuation patterns—a falling wedge and a bull flag—that reinforce the cryptocurrency’s upward trajectory. After a decisive breakout from the wedge, Ethereum consolidated above the $2,400 level, absorbing selling pressure while maintaining structural integrity. This consolidation phase has established a strong base, with volume surging during the breakout leg, indicating increased trader participation and confidence. The next critical resistance lies near $2,800, and a successful breach of this level is expected to trigger a strong rally toward the $3,834 resistance zone, which represents a historical high from late 2024.

Technical Insights from COINOTAG Analyst Merlijn

Merlijn, a respected analyst within the COINOTAG community, highlights that Ethereum’s price action between January and April formed a falling wedge after a downtrend from $3,800. The price bottomed near $1,600 before swiftly climbing above $2,300, where it established a clean bull flag channel by June. This pattern suggests that Ethereum is poised for a continuation of its upward momentum, provided it can clear the upper boundary of the flag near $2,800. The volume dynamics during these phases further validate the strength of the move, emphasizing that the breakout has solid structural support rather than being a short-lived spike.

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Monthly Chart Patterns Reflect 2017’s Liquidity Grab and Recovery

Ethereum’s current monthly chart patterns bear a striking resemblance to the 2017 breakout cycle, characterized by a liquidity grab below $1,500 followed by a rapid recovery above $2,600. This pattern, as analyzed by Merlijn, indicates a strong demand resurgence and range control, similar to the historic rebound from $6.50 to over $140 within months in 2017. The mid-wick recoveries on high volume suggest aggressive buying interest, reinforcing the bullish thesis. Ethereum is currently trading between $2,373 and $2,647 on the monthly timeframe, building momentum toward the $3,000 resistance cluster. This range-bound activity with upward bias signals a healthy accumulation phase ahead of a potential breakout.

Volume and Market Structure Support Continued Upside

Volume analysis reveals that Ethereum’s breakout from the falling wedge was accompanied by a significant increase in trading activity, a hallmark of sustainable moves. The market structure shows strong support near $2,450, which has consistently held during recent pullbacks. This support level acts as a critical foundation for bulls to maintain control. Should Ethereum successfully surpass the $2,800 resistance, the path toward the $3,834 target remains clear, with momentum indicators favoring further gains. The current price action suggests that Ethereum is not at a market peak but rather in the midst of a well-formed bullish phase, supported by both technical patterns and historical price behavior.

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