Ethereum forms a bull pennant after a strong rally from $2,000 to $3,600, pointing to a possible $5,000 breakout.
Whale wallets acquired over 856,000 ETH worth $3.16B since July, with $236M added by new wallets in a single day.
Ethereum transactions have surged to a one-year high, signaling growing network use and building pressure under current consolidation.
Ethereum (ETH) trades at $3,804.74, posting a 4.96% 24-hour increase. A bull pennant structure now signals a possible rapid move toward $5,000.
Classic Bull Pennant Structure Forms on Ethereum
Technical analysts are tracking a developing bull pennant on Ethereum’s daily chart. Titan of Crypto (@Washigorira) reported that ETH’s recent vertical rally from under $2,000 to over $3,600 formed the pole of the pattern.
The price has since consolidated into a downward-sloping symmetrical triangle, forming the pennant. This coiling phase often reflects market equilibrium before a breakout continues the prior trend. If Ethereum breaks above this pattern with volume, the projected technical target stands at $5,018.
Traders are watching for a confirmed breakout, with key signals including a daily close above the pennant resistance, increased trading volume, and sustained price action above the $3,800–$3,900 zone.
Transaction Surge Points to Rising Network Usage
On-chain activity is also supporting Ethereum’s bullish setup. Christiaan (@ChristiaanDefi) noted that Ethereum transactions have reached their highest level in a year. This rise in user engagement suggests increased interest in the network across multiple sectors.
Transaction growth can signal higher demand, especially during consolidation periods. This activity may provide foundational support as Ethereum prepares to validate the bull pennant. As more users interact with the network, technical patterns often gain stronger backing from fundamental factors.
Sustained on-chain growth may help push Ethereum toward the projected $5,000 mark more quickly if the breakout confirms.
Whale Accumulation Strengthens Bullish Outlook
Institutional buying further underlines bullish momentum. The Moon Show (@TheMoonShow) shared that three new wallets acquired 63,837 ETH, worth $236 million, in a single day. Since July, 14 wallets have accumulated 856,554 ETH, totaling $3.16 billion.
This wave of accumulation suggests long-term confidence among major holders. Smart money often positions during quiet technical setups, preparing for strong continuation moves.
Together with the pennant formation and surging network activity, these inflows point toward growing pressure for a potential breakout to $5,000.
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