Ethereum News Today: Ethereum Surges Past Four-Year Resistance Completing 2021 Bullish Pennant Pattern With 18.4% Potential Rally

Ethereum (ETH) has marked a significant milestone by breaching a four-year diagonal resistance on its weekly chart, a development that aligns with a bullish pennant pattern formed since 2021. The breakthrough, confirmed by price action surpassing the pennant’s upper boundary, suggests a potential continuation of an upward trend following a prolonged consolidation phase. Traders and analysts have highlighted this as a rare technical event, with the confluence of pattern completion and resistance clearance reinforcing a strong bullish case. The pennant formation typically indicates a resumption of an uptrend after a period of range-bound trading, and its completion now positions Ethereum for a potential rally. The diagonal resistance, first identified in 2021, had previously constrained ETH’s price movements, making its breach a psychologically and structurally significant event [1].

The technical implications of this move are notable. A bullish pennant is characterized by converging trendlines that narrow over time, signaling consolidation before a breakout. Ethereum’s price has tested the $3,800 resistance level multiple times, with each attempt showing increased buying strength. The recent surge above the pennant’s upper trendline coincided with a breakout through the four-year diagonal resistance, suggesting a higher probability of sustained upward momentum. If the price holds above this new level and confirms with strong volume, the target levels could extend beyond $4,500—a critical threshold identified by on-chain data as a potential catalyst for further gains [3].

Market participants remain cautiously optimistic, though volatility and false breakouts are acknowledged risks. Institutional activity has amplified Ethereum’s momentum, with Ethereum-based ETFs recording $8.8 billion in cumulative inflows, driven by funds like BlackRock’s ETHA and Fidelity’s FETH. This demand underscores broader confidence in Ethereum’s fundamentals, particularly its ecosystem advancements. Layer 2 solutions such as Arbitrum and Optimism are reducing gas fees and enhancing scalability, while tokenization efforts and DeFi protocols solidify Ethereum’s role in Web3 infrastructure. Analysts note that Ethereum’s dominance in tokenization mirrors the dominance of Google in internet search, highlighting its foundational influence [1].

Despite these positives, macroeconomic factors and Bitcoin’s price action remain key variables. Bitcoin’s inability to break past $120,000 has introduced broader market uncertainty, though Ethereum appears to be decoupling from Bitcoin’s performance. The weekly MACD turning green and the ETH/BTC inflow ratio hitting multi-year lows suggest a quiet rotation into Ethereum, a trend that could accelerate if institutional flows persist [1].

The next critical test for Ethereum will be its ability to sustain momentum above $4,500, a level that historically acts as a ceiling. A confirmed breakout here could validate the bullish pennant and set the stage for a retest of $8,000, depending on macroeconomic conditions and ETF inflows. While price predictions remain speculative, the alignment of technical, institutional, and macroeconomic factors indicates Ethereum’s upward trajectory is gaining strength [1].

Sources:

[1] [Ethereum (ETH) Price Prediction](https://bravenewcoin.com/insights/ethereum-eth-price-prediction-ethereums-path-to-8000-gains-momentum-as-eric-trump-backs-bullish-outlook)

[3] [Crypto Markets Retreat After Liquidation of $737 Million](https://www.msn.com/en-us/money/markets/crypto-markets-retreat-after-liquidation-of-737-million/ar-AA1JcuUY?ocid=finance-verthp-feeds)