Ethereum News Today: Ethereum Nears $3,740 Resistance with 1.15% 24-Hour Gains as Rare Wedge Pattern Approaches Breakout

Ethereum is approaching a critical juncture as technical analysts highlight the formation of a rare weekly wedge pattern, now nearing a potential breakout phase. The pattern, characterized by converging trendlines, has been tested for the third time, a development that historically increases the probability of a significant price movement. According to Mitrade, Ethereum’s current position near the wedge’s resistance level suggests an imminent decision point for the cryptocurrency: either a sustained upward breakout or a reversal [1]. This analysis aligns with broader market observations, as Ethereum has recently surged above the $3,700 threshold, reigniting bullish momentum across the broader crypto sector [2].

The wedge pattern’s dynamics are further underscored by its rarity. Weekly timeframes often reflect medium-term investor sentiment, making a breakout here particularly impactful. Mitrade’s analysis emphasizes that a successful breach of the resistance could validate the wedge’s bullish potential, potentially triggering a cascade of follow-through buying [1]. Meanwhile, TradingView’s technical indicators corroborate the growing optimism, though some platforms caution that a pullback remains a possibility if the price fails to hold above key support levels [3].

Ethereum’s weekly ETH/USD chart has formed a descending broadening wedge, a rare bullish pattern known to precede breakout moves. This structure is identified by lower lows and horizontal resistance, creating a fan-shaped triangle. Historically, such patterns have appeared near the end of consolidation phases before a major price rally begins. According to technical observations shared by Titan of Crypto, Ethereum has traced the pattern precisely with alternating swings between the upper and lower boundaries. The price is now approaching the resistance level at $3,740, a zone that has previously held back upward momentum [1].

Recent data also points to strong accumulation by large holders. Ali (@ali_charts) reports that Ethereum whales have acquired over 1.13 million ETH, worth around $4.18 billion, in the past two weeks. This aggressive buying suggests increasing confidence in Ethereum’s price potential. Institutional and whale accumulation has historically aligned with bullish setups. The combined technical formation and heavy buying pressure may add further support to a possible breakout scenario.

Volume levels are also increasing, a key element in confirming breakout patterns. Rising volume often accompanies the final phase of wedge formations, reinforcing the probability of a sharp upward movement. As of writing, Ethereum is priced at $3,626.40, having increased by 1.15 percent in the last 24 hours and 1.04 percent in the last one week. A breakout above $3,740, followed by a retest of that level as support, may confirm the wedge completion [1].

The implications of a breakout extend beyond technical analysis. If Ethereum continues its upward trajectory, it could challenge Bitcoin’s dominance in the crypto market, a scenario dubbed the “flippening” by some observers. While this remains speculative, the current price action reflects heightened market confidence. For instance, Ethereum’s recent surge has been accompanied by increased trading volumes and positive on-chain metrics, signaling strong investor participation [2]. However, analysts urge caution, noting that crypto markets remain volatile and susceptible to macroeconomic shifts.

The current environment suggests Ethereum’s price action still has potential to expand without entering overheated territory. If momentum continues to build and resistance levels are breached, Ethereum could target between $5,000 and $6,000 based on the wedge’s projected move. Despite the recent increase in Ethereum funding rates, current levels remain below those seen during past bull runs. Crypto Rand noted that funding remains relatively low, leaving more room for bullish momentum to develop [3].

As Ethereum approaches this pivotal moment, traders and investors are advised to monitor key resistance levels and volume patterns for confirmation of a breakout. A failure to maintain momentum above $3,700 could result in a retest of support, potentially capping gains or triggering a pullback [2]. Conversely, a decisive move beyond $3,900 may open the door to higher targets, though such outcomes depend on broader market conditions and regulatory developments.

The current environment underscores the importance of technical analysis in navigating crypto markets. While fundamental factors such as Ethereum’s upcoming upgrades and adoption rates play a role, short-term price action remains heavily influenced by chart patterns and trader psychology. This dynamic highlights the need for a balanced approach that incorporates both technical and fundamental insights [1].

Source:

[1] [Mitrade] [https://www.mitrade.com/au/insights/news/live-news/article-3-981063-20250723]

[2] [The Moon Show] [https://themoonshow.com/blog/]

[3] [TradingView] [https://www.tradingview.com/symbols/SP500FT/ideas/page-6/]