Ethereum has broken out of a multi-year falling wedge, showing the same price structure Bitcoin displayed before its 2021 parabolic rise.
RSI indicator on Ethereum has flashed a triple-tap and bullish crossover, a momentum shift that mirrored Bitcoin’s breakout setup in 2020.
Market sentiment remains doubtful as Ethereum lingers below $4,000, setting the stage for a disbelief-driven rally similar to Bitcoin’s surge.
Ethereum is showing technical patterns that mirror Bitcoin’s breakout in 2021. A side-by-side chart comparison reveals recurring formations in both price action and momentum indicators.
Historical Pattern Repeats with a Falling Wedge Formation
Crypto analyst Merlijn The Trader shared a chart comparison illustrating Ethereum’s current movement compared to Bitcoin’s performance in 2020–2021. Bitcoin formed a multi-year falling wedge before a strong breakout in late 2020. Ethereum appears to be following the same structure.
https://twitter.com/MerlijnTrader/status/1952021639950217552
As of mid-2025, Ethereum has broken out of a similar falling wedge. The pattern suggests a potential shift from long-term consolidation to aggressive upward movement. This setup follows a familiar script for assets transitioning from accumulation to breakout phases.
Bitcoin moved from $10,000 to over $60,000 in six months following its breakout. Ethereum’s structure is closely aligned, indicating a bullish setup. The breakout is unfolding as Ethereum continues to trade just below the $4,000 mark.
RSI Behavior Mirrors Bitcoin’s Momentum Shift
Beneath both Ethereum and Bitcoin’s charts is the RSI (Relative Strength Index) comparison. Ethereum has shown a triple-tap RSI pattern, just as Bitcoin did before its 2021 rally. The three stages—initial breakout failure, retest, and final breakout with momentum flip—have all occurred.
Merlijn noted the RSI crossover, where the white RSI line crosses above the yellow moving average. This movement marked a momentum shift for Bitcoin in late 2020 and is now present on Ethereum’s chart in 2025. The RSI breakout reinforces Ethereum’s transition from range-bound trading to trend expansion.
These technical signs point toward increasing buying strength. The RSI momentum flip is widely used by analysts to signal the beginning of a new bullish phase.
Disbelief Sentiment May Fuel Further Gains
Ethereum has been consolidating below $4,000 for an extended period. According to Merlijn, this reflects the same disbelief seen in Bitcoin before its rapid ascent. Market participants were hesitant then, just as they are now.
The disbelief stage is often followed by a rapid revaluation of price. With Ethereum now breaking out technically and sentiment still skeptical, conditions resemble Bitcoin’s historical setup. This combination has created fertile ground for price acceleration in previous market cycles.
Crypto market structure, momentum, and psychology are aligning. According to the chart analysis, Ethereum may now be positioned for an aggressive upward move in 2025.
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