Ethereum News Today: Ethereum Holds Above $3,600 as $3,850 Resistance Tests $4,000 Rally Potential

Ethereum (ETH) remains entrenched above $3,600, with traders closely watching for a breakout past $3,850 that could catalyze a rally toward $4,000 and beyond. The cryptocurrency has seen a two-week upward surge, climbing from $2,900 to $3,850 before stabilizing within a $3,600–$3,850 range. Technical analysts highlight a four-year bullish pennant pattern forming since late 2021, with converging trendlines and rising support from 2022 lows providing structural strength. A confirmed breakout could retest Ethereum’s all-time high of $4,850, reigniting long-term bullish momentum [1].

Michaël van de Poppe, a noted crypto analyst, predicts ETH could target $4,000 if Bitcoin (BTC) surpasses $120,000. Van de Poppe argues that repeated testing of the $3,850 resistance—now breached four times—suggests a potential breakout. He also notes liquidity buildup above this level could amplify upward movement if buyer activity persists [1]. The analyst emphasizes that a sustained Ethereum rally might trigger a broader altcoin surge, with double-digit gains possible across the sector.

The weekly chart from Satoshi Flipper illustrates Ethereum’s proximity to a diagonal resistance barrier, reinforcing the significance of the current price action. The pennant pattern’s consolidation phase, initiated after ETH peaked at $4,850 in late 2021, appears to be nearing its final stage. Traders are cautiously optimistic, though risks remain. A breakdown below $3,600 could trigger a decline toward the $2,630 support zone, undermining the bullish case [1].

Bitcoin’s trajectory is seen as a critical catalyst. A sustained BTC rally toward $120,000 could drive capital into ETH and major altcoins, accelerating Ethereum’s push past resistance. The interplay between BTC and ETH has historically been strong, with Bitcoin’s performance often dictating broader market sentiment. While Ethereum’s technical outlook remains favorable, market participants await confirmation of a breakout to validate the potential for new highs [1].

The cryptocurrency’s ability to maintain stability above $3,600 will be pivotal in the coming weeks. A successful surge past $3,850 could mark a turning point, aligning with the four-year bullish pennant’s projected trajectory. However, volatility and macroeconomic factors may still pose challenges, requiring traders to monitor liquidity conditions and broader market dynamics.

Source: [1] [Ethereum Eyes $4,000 as Breakout Momentum Builds Above Resistance] [https://cryptofrontnews.com/ethereum-eyes-4000-as-breakout-momentum-builds-above-resistance/]