Ethereum is staging a technical breakout that could propel the second-largest cryptocurrency toward new highs, according to analysts tracking multiple bullish setups.
At a Glance
- ETH has broken out of a falling-wedge pattern and is holding above $3,360
- Fibonacci extensions point to targets at $4,950, $5,760, and $6,690
- Daily transactions hit a fresh record of 2.6 million
- Why it matters: A confirmed move above $3,400 could unlock rapid upside momentum
The move follows weeks of consolidation that ended when Ethereum cleared the upper boundary of a falling wedge. Analyst Marzell told News Of Losangeles the breakout, combined with a successful retest of the 0.382 Fibonacci retracement level, signals a potential trend reversal.
“Momentum is turning bullish as key fib levels align,” Marzell said, adding that the structure remains favorable unless price drops back below critical support.
Multiple Upside Targets in Play
Fibonacci extension analysis places the next resistance clusters at:
- $4,950 – 1.618 extension
- $5,760 – 2.0 extension
- $6,690 – 2.618 extension
For these targets to activate, bulls must first secure a daily close above the psychological $3,400 barrier. Failure to do so could open the door for a pullback toward the $3,200 support zone.
Short-term traders are also watching newly formed CME futures gaps. Market observer CW noted that a fresh gap exists around $3,325, while an older gap near $3,000 remains unfilled. Historically, such gaps often act like magnets during low-volatility periods.
ETH/BTC Compression Suggests Altcoin Rotation
Ethereum’s strength isn’t limited to dollar-denominated pairs. Michaël van de Poppe highlighted that ETH is compressing against Bitcoin and trading above its 21-day moving average.
“ETH holding above the 21-Day MA against Bitcoin would signal that there’s more risk appetite flowing towards the altcoin markets,” he explained.
Key technical levels on the ETH/BTC chart include:
- Support: 0.0325 BTC (tested multiple times)
- Resistance: Break of 0.034 BTC could accelerate outperformance
A symmetrical-triangle breakout on the weekly timeframe reinforces the optimistic outlook. According to chartist Kamran Asghar, ETH spent several months coiling inside the pattern before pushing through the upper trendline. The measured move projects a rally toward $4,200, aligning with the first major Fibonacci hurdle.
On-Chain Activity Reaches Record Highs
Behind the price action, network usage is surging. DustyBC Crypto reported that Ethereum processed 2.6 million transactions in a single day, the highest figure on record. The spike suggests growing demand for block space, a trend that typically coincides with rising fees and positive price momentum.
Derivatives markets are also heating up. Data from Binance shows open interest on ETH perpetual futures climbing to $8.6 billion, the loftiest reading since October 2025. The buildup follows a sharp round of liquidations that flushed excessive leverage and potentially created a cleaner foundation for the next leg higher.
Key Levels to Watch
Immediate Bullish Scenario:
- Flip $3,400 to support on high volume
- Target $4,200 (triangle measured move)
- Extend toward $4,950 (Fibonacci cluster)
Bearish Invalidation:
- Lose $3,200 on a daily closing basis
- Risk revisiting the CME gap at $3,000
- Potential deeper correction toward $2,800
With multiple technical patterns aligning and on-chain metrics flashing strength, traders will be closely watching the next 48 hours to see if Ethereum can confirm its breakout and march toward the ambitious $6,690 Fibonacci extension.
