Ethereum Price Descending Channel Breakout Hints ETH Rally to $3K
Key Insights:
- ETH formed a bullish triangle at $1,623; the breakout could spark a rally to $1,948 or $2,000.
- The long-term chart showed an $8K target as ETH nears the end of a multi-year consolidation.
- Whale accumulation rises to 37.42%, backing Ethereum’s bullish market sentiment.
Ethereum price showed fresh bullish momentum after a breakout above a descending channel. This has capped price gains since March.
The breakout aligned with Carl Moon’s technical outlook and was supported by whale accumulation data from Lookonchain.
Technical indicators and long-term patterns from Merlijn The Trader suggest strong upward momentum for Ethereum. Supported by these factors, ETH seems positioned to challenge the $3,000 level soon.
Ethereum Price Faces Breakout from Descending Channel
Crypto analyst Carl Moon recently shared an analysis showing Ethereum’s breakout above a multi-week descending resistance line. The structure had restricted upside momentum since early March.
ETH’s breakout originated from a solid horizontal support level around $1,418. This momentum propelled the Ethereum price beyond the $1,600–$1,675 range.
That range included the 38.2% Fibonacci retracement from previous declines and the upper edge of the descending channel. The move above it signaled a shift in market structure.
Carl identified the next price zone between $1,675 and $3,000 as the next area of interest for ETH. Sustained volume and trend momentum may drive further gains within this price window.
Ethereum price traded near $1,633 at the time of writing, registering a 1.60% daily gain. This price level reflected continued demand after breaking the channel’s upper limit.
The breakout also holds psychological weight, as previous attempts to pass $1,675 led to sharp reversals. A firm close above this zone daily would mark structural confirmation of a trend reversal.
ETH Whale Accumulation
Additionally, Lookonchain data recorded significant on-chain activity tied to a single whale or institutional buyer. The entity recently bought 4,208 ETH, valued at approximately $6.87 million, across four wallets on OKX.
The same whale borrowed 4.85 million USDT from Aave and sent it back to OKX, possibly to buy more ETH. This trend was built on earlier actions. A day prior, the whale withdrew 15,953 ETH, worth around $26.16 million, from OKX and deposited it into Aave.
This sequence of actions suggests the whale has secured ETH for yield strategies or long-term positioning. Such large-scale movements by experienced traders or institutions often precede broader market shifts.
The buying, collateralizing, and redeploying capital pattern reveals strategic confidence in Ethereum’s upside. This accumulation underpinned the breakout with fundamental strength, making it more than a technical event.
Technical Triangle and RSI Support Further Gains
Ethereum’s 4-hour chart featured an ascending triangle, which supported the ongoing bullish continuation. The base of the triangle formed around $1,418, while resistance aligned precisely at $1,675. This technical confluence reinforced Carl Moon’s breakout analysis.
Momentum indicators support bullish continuity. The Supertrend has flipped positive, and the RSI remains above 50 but below overbought levels. These indicators point to remaining upside potential before reaching exhaustion zones.
More so, volume patterns also supported the bull run case. The upsurge in the Ethereum price was seen in conjunction with the onset of high volumes. On the other hand, pullback was signifying lower turnover, which is evidence of accumulation with strong hands.
A bullish surge to $1,948, aligning with the 78.6% Fibonacci retracement, could set the stage for ETH to reach $2,000. This progression would strengthen the momentum needed to rally toward the $3,000 mark.
Long-Term Bullish Pennant Eyes $8,000 Target
Crypto analyst Merlijn The Trader shared a broader macro perspective built on a bullish pennant structure that started post-2021 peak. According to his chart, ETH price has now broken above the upper trendline of this long-term consolidation.
His outlook extended the possible Ethereum price trajectory to $8,000 by 2027. The forecast aligned with long-term Fibonacci extension levels and the asset’s historical price cycles. The narrowing ranges at short and long-time frames led to a key reversal point.
The lower trend line hovered correctly during these oscillations to further prove its role as macro support. Due to daily volatile fluctuations, the upper boundary violation suggests that Ethereum can transition to a new upward cycle. This projection will hit the $3,000 level in the long term.
