Ethereum ($ETH ) has broken through the $3,125 level, marking a significant bullish continuation from its recent consolidation phase. Technical analysis now suggests that Ethereum could be on track to test the $4,000 mark, supported by strong momentum indicators and a well-defined price structure.
Breakout Above $2,855 Confirms Bullish Structure
The 4-hour ETH/USD chart reveals a decisive breakout above the $2,855 horizontal resistance—a level that had constrained price movement for over two months. This consolidation range has now given way to a new uptrend, as Ethereum accelerates above the former cap.
A green ascending trendline, in place since April, intersects the breakout zone and has consistently acted as dynamic support. Ethereum has respected this trendline multiple times, reinforcing its validity. The current price movement reflects a classic rounded bottom formation, typically seen at the base of major trend reversals.
Additionally, an earlier descending resistance line—marked in blue—was broken in May. Following that, ETH entered a period of sideways movement, forming the base of what would become a bowl-shaped structure. This base-building phase resulted in increasing bullish pressure, eventually culminating in a clean breakout above $3,125.
RSI Bowl Pattern Signals Strengthening Momentum
Supporting this bullish breakout is a notable pattern in the Relative Strength Index (RSI), which has formed a textbook bowl-shaped curve. The RSI currently reads 71.43, indicating entry into overbought territory. This gradual slope reflects a steady increase in buyer interest and diminishing selling volume over time.
Market watchers have pointed out that Ethereum’s RSI structure is among the most technically sound in the current market landscape. One analyst described the RSI bowl as a “delicious spot” to observe a market turning point. Historically, similar RSI formations have preceded significant price advances.
The synchronization between RSI behavior and Ethereum’s price action further reinforces the current bullish outlook. When RSI and price curves move in harmony, it often results in sustained upward trends once key resistance levels are breached.
Path to $4,000: Is Ethereum Ready for the Next Leg Up?
Ethereum’s breakout follows months of constructive accumulation and repeated testing of the $2,855 zone. The alignment of bullish indicators—including the rounded base, breakout momentum, and RSI bowl—has established a solid technical foundation for continued gains.
Analysts are now eyeing $4,000 as the next major resistance level. A blue arc on the ETH/USD chart outlines a projected price curve that aligns with historical fractals. These past patterns, which preceded major rallies, suggest a high probability of continued upward movement if the current trajectory holds.
For Ethereum to maintain its bullish momentum, holding above $3,125 is crucial. This level now transitions from resistance to a key support zone. Meanwhile, $2,855 remains an essential floor for bulls to defend in the event of a pullback.
With the RSI confirming strong upside momentum and price action respecting both historical patterns and trendlines, Ethereum appears poised for further gains. If buying pressure persists and technical support remains intact, the $4,000 milestone may arrive sooner than anticipated.
