Ethereum Price Ready to Break Out? Bullish Pennant Points to $3,600

Ethereum (ETH) price is consolidating within a bullish pennant pattern, signaling a potential breakout toward $3,600. Analysts predict that if ETH surpasses key resistance levels, it could trigger a larger rally, with long-term targets extending to $8,540.

Ethereum Price Bullish Pennant Formation

The Ethereum 4-hour chart shows the bullish pennant pattern which forms after an initial upsurge in price. This structure consists of a sharp price increase, followed by a period of consolidation within converging trendlines.

A bullish pattern of the major asset might emerge if the price breaks above the $2,800 resistance level. The pennant’s target would be towards the upside, close to $3,200 to $3600 making it an important level to monitor for the bulls.

However, the level of $2,600 was well supported to the end and turned into a strong support. Should Ethereum price fails to move past this level, bear pressure may as well build up, probably pushing Ethereum down to other lower price ranges.

Currently, the Relative Strength Index (RSI) of Ethereum is 37.90 which indicates that Ethereum is in the oversold position rather close. This indicates that bearish pressure could be testing, implying a probable bounce back. However, if the RSI goes above 50, this would suggest a return of buyers and a possible shift in the trend.

The MACD remains in bearish state, as the MACD line indicates 6.83, still below the signal line – 59.95. But in the histogram, the bearish run is slowly starting to fade, suggesting that negative momentum is waning. Another expectation was a bullish crossover in MACD that will further strengthen the directional movement.

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Market Analysts Predict Massive Upside Potential

Market analyst JavonTM1 argued that Ethereum continues to trade in the uptrend and that the bulls will push the price to hit $8,540 provided support levels are held. The first of such goals is $4 811.71 above the current prices and this is an increase of 75%.

JavonTM1 states that ETH has already breached key structural resistance levels, thus supporting recent upward trajectory’s chances. If Ethereum breaks the level of $4,811, the farther point could be seen at 210 percent reaching $8,540.

Another market analyst, TedPillows has noted a repeating cycle in Ethereum. He also pointed out that ETH has only experienced one capitulation candle in Q1 of the year 2024, Q3 of the year 2024, and Q1 of the year 2025. In the previous two cases, Ethereum touched the lowest and then it gained by 90-100% within 8-12 weeks.

Likewise, TedPillows anticipates the very same asserting that Ethereum is in a process of staging the next move up. He believes Ethereum is set to “melt faces” as bullish momentum builds.

Ethereum Supply and ETF Inflows Impact Price Outlook

Justin Drake from Ethereum has claimed that the ETH has the capability of becoming ‘ultra sound money’ due to supply cuts. This burn mechanism discussed in the Ethereum system model part of the London Hard Fork still reduces ETH supply.

Besides, the Ethereum ETFs have also witnessed $307.8 million net inflows marking it the largest in a single day since December. BlackRock bought the largest amount of ETH for the week, 276.20 million that is attributed to the growing institutional demand.