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Ether Technicals Point to a Long Bullish Phase
Ethereum (ETH) is showing technical signs that could underpin a multi-year bull market, with on-chain observers and chart analysts flagging a powerful megaphone (broadening) pattern on weekly charts. Traders are eyeing $5,000 as a key short-term battleground and $10,000 as a longer-term target if bullish momentum continues to expand.
What the Megaphone Pattern Means for ETH
The megaphone formation—also called a broadening pattern—captures widening price swings characterized by progressively higher highs and lower lows. When this pattern resolves with a confirmed breakout above resistance, it can precede sharp, accelerated rallies. Conversely, failure to sustain momentum risks a reversal into a bearish phase.
Key resistance and liquidation levels
Immediately, ETH faces a supply wall near $5,000. Clearing and holding above that level could force the closure of heavily leveraged short positions—analysts estimate as much as $5 billion in cumulative short liquidation if ETH extends beyond this threshold. A visible sell wall sits close to $5,100, which on-chain traders describe as a liquidity magnet where whales might route price to harvest shorts.
Short-term Risks: Pullbacks and Moving Averages to Watch
Traders should monitor volume closely. A breakout without meaningful participation risks a false move and a swift retracement. If ETH fails to overcome resistance, corrective paths include a pullback toward the 12-week simple moving average (SMA), currently near $3,500, or the lower pattern support around $3,000, which aligns with the 25-week SMA. These levels would represent healthy re-tests within a larger structural uptrend if accompanied by normalized market volume.

Whales, liquidity and trade positioning
Market participants warn that large holders can target concentrated liquidity zones. The popular trader Merlijn noted the strong sell concentration at about $5,100 and advised traders to prioritize defensive positioning: "Play the hunter, not the hunted." That typically means recognizing the potential for aggressive moves into liquidity pockets to trigger liquidations and sharp intraday swings.
Macro View: Multi-Year Bullish Thesis and Bitcoin Correlation
Beyond the short-term noise, some analysts argue ETH has entered a new structural expansion. Technical strategist Jackis suggests Ethereum broke out of a 4.5-year institutional accumulation range and that the previous four-year cycle effectively ended in December 2024. In this view, ETH could remain in a bullish regime for years—although Jackis cautions that mid-term shakeouts and repeated tests of diagonal resistance may occur before the next sustained leg higher.
One potential correction scenario mirrors Bitcoin’s mid-2023 decline to $25,000: a deeper, fear-driven retracement before resumption of the broader uptrend.
How closely ETH follows BTC
Correlation with Bitcoin remains an important variable. Market analysts at ecoinometrics note that despite ETH’s recent outperformance, the asset has maintained a strong historical correlation with BTC—averaging above 0.8 over the past five years and still near that level today. This suggests Bitcoin price action and macro crypto flows will likely influence Ether’s trajectory even during an ETH-led rally.
What Would Confirm the Bull Case?
From a technical perspective, sustained acceptance above the 2021 all-time high of $4,880 would be a bullish signal for continuation into higher resistance bands. If ETH can convincingly clear the $5,000–$5,100 zone with volume confirmation, the megaphone breakout thesis gains credibility, opening the statistical pathway toward larger targets such as $10,000 over an extended multi-year expansion.
In summary, ETH’s chart structure and market dynamics point to a credible bullish scenario that could last for years, tempered by the possibility of short-term shakeouts, liquidity hunts by whales, and continued correlation with Bitcoin. Traders should watch key resistance, SMA support levels, on-chain liquidations, and volume for confirmation of any sustained breakout.
Source: cointelegraph
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