Ethereum News Today: Ethereum's 16% Weekly Gains Rekindle Bullish Outlook as Wedge Pattern Targets $8,000–$10,000 Breakout

Ethereum’s price action has drawn attention from analysts as its chart pattern mirrors a historically significant structure from the 2019–2020 bull cycle. Technical analysts have identified a Descending Broadening Wedge pattern forming on ETH’s chart, a setup that previously preceded explosive growth during that period. The pattern, characterized by a narrowing range of price consolidation, is now retesting a critical resistance zone—a key level that has repeatedly halted bullish momentum in recent months. Traders are monitoring whether Ethereum can break above this barrier, which could signal the start of a new upward trend.

The current wedge resembles the 2019–2020 setup, where Ethereum’s price surged from around $130 to over $4,000 during a prolonged bull market. Analysts highlight that the retest of resistance levels in the $3,600–$3,850 range is a pivotal moment. A successful breakout could trigger a buying frenzy, especially as broader market conditions remain bullish, with Bitcoin’s rally toward all-time highs reinforcing positive sentiment. According to analysts, if Ethereum replicates its 2019–2020 trajectory, it may target $8,000–$10,000, a range previously cited as a cycle peak during earlier cycles [1][2].

Recent data shows Ethereum has gained 16% over the past week, with its price trading at $3,680 as of July 24, 2025. While the 24-hour trading volume has dipped 13.72% to $38.71 billion, institutional interest and DeFi growth continue to underpin bullish momentum. Technicians argue that the current consolidation phase is a necessary precursor to a breakout, noting that corrections of 10–15% are typical before a sustained upward move. However, risks remain if the resistance level fails to hold, potentially leading to short-term volatility.

The comparison to 2019–2020 is not merely technical. Ethereum’s expanding role as a layer-1 infrastructure for decentralized finance (DeFi) and Web3 has strengthened its fundamental appeal. Analysts like Crypto Bullet emphasize that the coin’s ecosystem growth, combined with rising institutional adoption, positions it well for a prolonged bull run if the pattern completes successfully. Nevertheless, forecasts of $10,000 are speculative and hinge on maintaining current momentum without external market shocks [3].

Market observers caution that while the wedge pattern suggests a strong case for a breakout, historical parallels are not guarantees. The 2019–2020 cycle was driven by unique factors, including the launch of Ethereum 2.0 and widespread DeFi adoption, which may not directly apply to the current environment. Nonetheless, the alignment of technical indicators and macroeconomic trends has sparked optimism among traders.

As Ethereum approaches this critical juncture, the focus remains on the $3,800–$4,000 zone. A decisive close above this level could validate the wedge pattern and reignite a multi-month rally. Conversely, a failure to break through may result in renewed bearish pressure, testing support levels closer to $3,400. The outcome will likely influence not only Ethereum’s short-term trajectory but also broader sentiment in the cryptocurrency market.

Source:

[1] [Ethereum Ready For $3800 Reclaim Despite Rejection] (https://www.mitrade.com/au/insights/news/live-news/article-3-982437-20250724)

[2] [Will Ethereum Reach $4000 This Week?] (https://www.bitrue.com/blog/will-ethereum-reach-4000-this-week)

[3] [Ethereum (ETH) Near Key Breakout Zone: Is $10K On The ...] (https://www.tronweekly.com/ethereum-eth-near-key-breakout-zone-is-10k-on/)