Ethereum News Today: Ethereum Nears $4,000 Resistance as Wedge Pattern Signals 52% Surge to $6,000

Ethereum (ETH) is approaching a critical juncture as it nears the completion of a rare descending broadening wedge pattern on the weekly chart, a formation historically linked to significant price movements. The cryptocurrency currently trades at $3,656 after rebounding from a recent dip, with key resistance identified at $4,000. A breakout above this level could trigger a surge toward $4,568.90 or $6,000, depending on how the pattern resolves [1].

The descending broadening wedge, characterized by diverging trendlines that expand as price oscillates within a narrowing range, has formed over several weeks. Analysts note that this pattern typically emerges at the end of a downtrend or prolonged consolidation phase. Titan of Crypto’s analysis highlights the "textbook" structure of the formation, with Ethereum maintaining higher lows while approaching the $4,000 resistance [1]. According to Ibrahim_Trade786, a successful breakout could validate the wedge’s completion, signaling a potential move toward $6,000 as structured accumulation gains momentum.

Technical indicators further underscore the significance of the $4,000 level. Ethereum’s weekly RSI remains neutral, while momentum metrics have stabilized, suggesting neither overbought nor oversold conditions. This positioning implies that buying pressure could intensify as volume increases, particularly if the price sustains above the critical threshold [1].

On-chain data corroborates the bearish-to-bullish shift. CryptoQuant reports that Ethereum’s selling pressure has dropped to a five-year low, with fewer coins being moved to exchanges compared to Bitcoin. This trend reduces the risk of abrupt selloffs and aligns with renewed institutional interest: Ethereum spot ETFs recorded $332.2 million in inflows on Wednesday [1]. Glassnode data also highlights major support between $2,000 and $3,000, while $4,500 remains a key resistance level.

Market analysts caution that the outcome hinges on Ethereum’s ability to hold above $4,000. Lau, a market analyst, notes that ETH’s 52% surge over 15 days has brought it to a pivotal retest of a long-term trendline. A successful hold above this level could propel the price toward $4,568.90, whereas a breakdown might trigger a short-term pullback before further recovery [1].

While the wedge pattern itself does not incorporate forecasts, historical context and on-chain metrics suggest a high probability of bullish resolution if the $4,000 level is decisively breached. Institutional inflows and reduced selling pressure reinforce this scenario, creating a self-fulfilling dynamic as traders act on shared technical signals.

Source: [1] [Ethereum Nears Completion of Rare Wedge Pattern, Here’s Why $4,000 Is the Breakout Level to Watch] [https://cryptofrontnews.com/ethereum-nears-completion-of-rare-wedge-patter/]

[2] [TradingView — Track All Markets] [https://www.tradingview.com/]