Ethereum Shows Potential for Breakout Toward $3,834 Following Bullish Continuation Patterns

• Ethereum has surged past the $2,556 mark, signaling robust bullish momentum with key technical patterns pointing toward a breakout target near $3,834.

• The cryptocurrency’s price action mirrors historical liquidity grabs, notably resembling the 2017 recovery, underscoring strong market conviction and volume support.

• According to COINOTAG analyst Merlijn, Ethereum’s current structure forms a compelling bull flag and falling wedge, with critical resistance at $2,800 needing to be surpassed to unlock further gains.

Ethereum breaks above $2,556, forming bullish continuation patterns with a $3,834 breakout target now in sight, reflecting strong volume and historical recovery signals.

Ethereum’s Bull Flag and Falling Wedge Patterns Signal Potential Breakout

Ethereum’s recent price movements have formed two significant bullish continuation patterns—a falling wedge and a bull flag—that reinforce the cryptocurrency’s upward trajectory. After a decisive breakout from the wedge, Ethereum consolidated above the $2,400 level, absorbing selling pressure while maintaining structural integrity. This consolidation phase has established a strong base, with volume surging during the breakout leg, indicating increased trader participation and confidence. The next critical resistance lies near $2,800, and a successful breach of this level is expected to trigger a strong rally toward the $3,834 resistance zone, which represents a historical high from late 2024.

Technical Insights from COINOTAG Analyst Merlijn

Merlijn, a respected analyst within the COINOTAG community, highlights that Ethereum’s price action between January and April formed a falling wedge after a downtrend from $3,800. The price bottomed near $1,600 before swiftly climbing above $2,300, where it established a clean bull flag channel by June. This pattern suggests that Ethereum is poised for a continuation of its upward momentum, provided it can clear the upper boundary of the flag near $2,800. The volume dynamics during these phases further validate the strength of the move, emphasizing that the breakout has solid structural support rather than being a short-lived spike.

Monthly Chart Patterns Reflect 2017’s Liquidity Grab and Recovery

Ethereum’s current monthly chart patterns bear a striking resemblance to the 2017 breakout cycle, characterized by a liquidity grab below $1,500 followed by a rapid recovery above $2,600. This pattern, as analyzed by Merlijn, indicates a strong demand resurgence and range control, similar to the historic rebound from $6.50 to over $140 within months in 2017. The mid-wick recoveries on high volume suggest aggressive buying interest, reinforcing the bullish thesis. Ethereum is currently trading between $2,373 and $2,647 on the monthly timeframe, building momentum toward the $3,000 resistance cluster. This range-bound activity with upward bias signals a healthy accumulation phase ahead of a potential breakout.

Volume and Market Structure Support Continued Upside

Volume analysis reveals that Ethereum’s breakout from the falling wedge was accompanied by a significant increase in trading activity, a hallmark of sustainable moves. The market structure shows strong support near $2,450, which has consistently held during recent pullbacks. This support level acts as a critical foundation for bulls to maintain control. Should Ethereum successfully surpass the $2,800 resistance, the path toward the $3,834 target remains clear, with momentum indicators favoring further gains. The current price action suggests that Ethereum is not at a market peak but rather in the midst of a well-formed bullish phase, supported by both technical patterns and historical price behavior.

Conclusion

Ethereum’s recent price action demonstrates a compelling bullish setup, underpinned by dual continuation patterns and strong volume support. The resemblance to 2017’s liquidity grab and recovery adds historical context to the current rally, emphasizing the potential for substantial upside. Key resistance at $2,800 remains the critical hurdle; clearing this level could unlock a move toward the $3,834 breakout target. Traders and investors should monitor these levels closely, as Ethereum’s market structure suggests a continuation of its upward momentum with solid conviction.