Ethereum has entered a critical phase as traders point to a bullish megaphone pattern that could push its price toward the $10,000 mark.
The pattern, also called a broadening formation, reflects widening price swings with progressively higher highs and lower lows.
A confirmed breakout from this setup often leads to strong rallies, though failure to maintain momentum can reverse the trend.
At present, Ether faces heavy resistance at $5,000.
Clearing this threshold could liquidate roughly $5 billion worth of short positions, potentially fueling further upward momentum.
If Ethereum fails to hold that level, analysts warn of a retracement toward $3,500, which coincides with the 12-week simple moving average, or even down to $3,000 where the 25-week SMA provides additional support.
Volume will be crucial, as a breakout without strong trading activity may prove unsustainable.
Trader Commentary
Crypto trader Merlijn noted that Ethereum faces a dense sell wall around $5,100.
He described it as “the kind of level whales dream about.”
According to Merlijn, liquidity around this point could act as a magnet, forcing heavily leveraged short positions to close.
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“Play the hunter, not the hunted,” he said, suggesting large investors may actively target these zones to drive prices higher.
Long-Term Perspective
While immediate resistance is the focus for many, some analysts are looking at Ethereum’s broader picture.
Technical specialist Jackis argued that ETH is “insanely bullish for years to come,” pointing out the asset has just exited a multi-year accumulation range.
He believes the previous cycle, which began in 2020, effectively ended in December 2024, paving the way for a new phase of expansion.
Jackis, however, cautioned against expecting a straight climb.
Ethereum has faced repeated rejections from record highs and is currently testing its sixth diagonal resistance line, which historically breaks only after multiple attempts.
A temporary pullback remains possible.
Possible Corrections
A deeper correction into support levels could rattle investor confidence before a new uptrend resumes.
Jackis compared the situation to Bitcoin’s 2023 retracement to $25,000, which briefly triggered panic before the market rebounded.
Correlation between Bitcoin and Ethereum also remains high.
Despite Ether’s stronger recent performance, market research group ecoinometrics highlighted that over the past five years the two assets have maintained an average correlation above 0.8.
“ETH is holding up better than BTC in price terms, but the correlation tells a different story,” the platform noted.
Outlook Ahead
Analysts agree that the long-term technical structure for Ethereum remains intact, even if volatility persists in the short term.
A decisive move above its 2021 all-time high of $4,880 could be the catalyst for sustained momentum and a new record-breaking rally.
For now, all eyes remain on the $5,000 zone, a battleground that could decide whether Ethereum pushes toward five digits or falls back into consolidation.