Ethereum (ETH) could be gearing up for a powerful breakout, with the second-largest cryptocurrency showing signs of entering the Wyckoff ‘Liftoff’ phase, according to multiple crypto analysts.ETH is up 4.2% over the past week and trading around the $2,500 mark at the time of writing, despite being down 19% on a year-over-year basis. But the current technical setup has traders betting that a sharp reversal could be on the horizon.
Wyckoff Pattern Points to Parabolic Move
Crypto trader Merlijn The Trader shared fresh analysis on X, noting that Ethereum appears to have cleared the key ‘creek’ and ‘spring’ phases of the classic Wyckoff Accumulation pattern phases that typically signal the final shakeout before a major rally.
In Wyckoff theory, the ‘creek’ represents overhead resistance, while the ‘spring’ is a bear trap that wipes out weak hands. Once the asset emerges from the spring with strength, it can enter the ‘liftoff’ phase, a period marked by aggressive buying and rapid price appreciation.
Merlijn’s chart shows ETH potentially aiming for the $3,700 resistance zone. If bulls can push through this level and retest it as new support, a new all-time high could come into view.
Other Analysts Weigh In
Crypto GEMs also pointed to Ethereum’s setup mirroring its 2024 price action. If this fractal holds, ETH could reclaim the $3,000 zone sooner than skeptics expect.
But not all analysts are on board with the bullish thesis. Noted trader Carl Moon warned that Ethereum’s four-hour chart reveals a rising wedge a pattern known for signaling downside risk. Unless ETH breaks decisively upward, Carl sees a possible pullback toward $2,200.
Network Fundamentals Remain Strong
On-chain activity is adding fuel to the narrative. CryptoGoos highlighted that Ethereum’s daily transactions are nearing record highs last seen in 2021. Meanwhile, analyst Crypto Rover said active addresses have hit a new all-time high, calling ETH below $3,000 an “absolute steal.”
Ethereum’s liquid staking metrics are equally robust, with 35.5 million ETH locked, a sign of long-term investor confidence.
At press time, ETH is changing hands near $2,522, down 3.8% over the past 24 hours, according to CoinMarketCap data.
As always, traders are watching key levels closely. A confirmed break above $3,000 could validate the Wyckoff ‘Liftoff’ thesis, but failure to hold momentum could open the door for a deeper correction.
The post appeared first on CryptosNewss.com