Ether continues to send positive technical signals, with cryptocurrency analyst Jelle highlighting the 'megaphone pattern' on the weekly chart, targeting $10,000.
The megaphone pattern, also known as the expanding pattern, shows increasingly volatile price movements with gradually higher peaks and lower troughs. A confirmed breakout through resistance often leads to strong bullish rallies; however, this structure can also shift to a bearish trend if momentum is not sustained.
Currently, the immediate resistance remains at $5,000. Expanding positions above this threshold could lead to the liquidation of about $5 billion in accumulated short positions, potentially extending the bullish phase of the megaphone pattern.
If it does not surpass the $5,000 threshold, a correction to the 12-week simple moving average (SMA, blue line) near $3,500 or the lower support of the pattern at $3,000, coinciding with the 25-week SMA (orange line), may occur. Confirming trading volume is extremely important, as weak participation can increase the risk of a false breakout.
Cryptocurrency trader Merlijn has emphasized the potential for a positive breakout and pointed out that ETH is facing a dense sell wall near $5,100, 'a level that whales dream of.'
This trader expects liquidity in this area to act as a magnet, pushing overly short positions into liquidation. 'Be the predator, not the prey,' Merlijn noted, suggesting that whales may push prices into this liquidity area.
ETH could maintain a bullish trend for many years to come.
While short-term fluctuations dominate market discussions, technical analyst Jackis has argued that ETH is 'extremely bullish for many years to come,' emphasizing that it has recently broken out of a 4.5-year accumulation range by institutions.
Theo Jackis, the four-year cycle that ended in December 2024 paved the way for a new structural expansion phase.
However, Jackis also warns of potential mid-term shocks before entering the next bullish phase. ETH has faced multiple rejections from its all-time high and is currently testing the sixth diagonal trend resistance, levels that are often broken after several attempts in history.
A deeper check into support, similar to Bitcoin's $25,000 correction mid-2023, could trigger sell-offs due to apprehensive sentiment before continuing the larger bullish trend. The correlation between Bitcoin and Ether also needs to be closely monitored.
According to ecoinometrics, although ETH has recently outperformed BTC, it still has a strong correlation with this coin. In a post on X, the market analysis platform stated:
'ETH is holding stronger than BTC in terms of price, but the correlation tells a different story. Over the past five years, the correlation of ETH with BTC has averaged above 0.8 and currently remains at that level.'
Jackis emphasizes that even in the case of short-term corrections, the long-term outlook remains unchanged. Maintaining above the all-time high of $4,880 from 2021 will signal the immediate continuation of this bullish trend.