Ethereum News Today: Ethereum Near $3,700 Breakout as Bitcoin 2020 Pattern Emerges

Ethereum is forming a multi-year consolidation triangle similar to Bitcoin’s 2017–2020 pattern, suggesting a potential breakout above $3,700 in the near term. The price structure, which has been developing since 2021, closely mirrors the pre-2021 setup seen in Bitcoin, which led to a significant rally. Ethereum is currently trading near $3,457 and approaching the upper boundary of this triangle, with resistance set at $3,700 and support levels at $2,700 and $1,400. A successful breakout above $3,700 could target the $6,000 to $7,500 range based on fractal comparisons with Bitcoin’s historical price action. Analysts highlight that maintaining support above $2,700 and especially $1,400 is crucial to validate the bullish pattern; breaking below these levels would indicate a bearish trend [1].

Momentum indicators reinforce the potential for a strong upward move, with a third bullish crossover observed—a pattern that preceded Bitcoin’s explosive 2021 rally. Both Ethereum and Bitcoin have seen two prior dips below their signal lines followed by failed crossovers, making the current crossover a critical technical signal. This momentum pattern reflects growing buying strength and market confidence, adding credibility to the forecast of a breakout [1].

The triangle’s lower support level has been tested multiple times, confirming its strength. Ethereum’s gradual recovery toward resistance mirrors Bitcoin’s consolidation before its breakout near $12,000. This structural symmetry suggests that a similar surge could occur if Ethereum breaks above $3,700 with strong volume. Analysts emphasize that volume confirmation and momentum strength in the coming sessions will be essential for validating the breakout. Ethereum’s alignment with Bitcoin’s historic cycles provides a potential roadmap, but close monitoring of price action and key support zones remains necessary [1].

If Ethereum confirms the breakout, it could mark a turning point for the asset, potentially leading to a multi-thousand-dollar surge. However, caution is advised, as a drop below $2,700 or $1,400 would invalidate the bullish setup. Technical analysts are watching closely for signs of volume confirmation and continued upward momentum to determine whether Ethereum will follow a similar trajectory to Bitcoin’s 2021 performance [1].

Source: [1] Ethereum May Mirror Bitcoin’s 2020 Setup with Potential Breakout Above $3,700 Resistance (https://en.coinotag.com/ethereum-may-mirror-bitcoins-2020-setup-with-potential-breakout-above-3700-resistance/)