Ether Reclaims $4K as Analysts Predict Explosive Breakout

Ether’s recovery to $4,060 during Monday morning trading in Asia represents a nearly 10% rebound from its October 17 crash to $3,700, though the asset remains 18% below its all-time high. According to Tradingview data, ETH has maintained crucial support levels with the weekly closing candle at $3,985, a zone that traces back to December’s highs and weekly closes. Analyst ‘Rekt Capital’ noted on Sunday that Ether “wicked into its multi-year downtrend that was broken months ago for another retest attempt to then return into the range,” indicating the cryptocurrency is successfully holding this critical technical level.

The bullish case extends beyond simple support holds. Analyst ‘Sykodelic’ emphasized that “there is not a single bearish thing about the ETH chart. It doesn’t really get much cleaner,” pointing to multiple positive indicators. He characterized recent market sentiment as “the biggest and most devastating mental onslaught from market makers” that has convinced traders the rally was over, despite the technically sound chart structure.

Perhaps the most compelling technical analysis comes from analyst ‘Merlijn the Trader,’ who identified what he calls “the most explosive setup since 2017.” In a detailed assessment, he pointed to a “textbook bullish pennant” forming on the monthly time frame, a pattern that typically precedes significant upward moves. His analysis suggests that “cycles don’t lie” and that “ETH is ready to rewrite history,” drawing direct parallels to the monumental 2017 bull run that saw Ethereum achieve unprecedented gains.

Adding substantial weight to the bullish outlook, John Bollinger, creator of the widely-used Bollinger Bands indicator, made a rare prediction for ETH over the weekend. He highlighted a ‘W bottom’ formation within the bands, a classic bullish reversal pattern that typically indicates the end of a downtrend and the beginning of a new upward cycle. As futures trader ‘Satoshi Flipper’ observed, “John Bollinger makes barely one crypto call per year and hasn’t made one for ETH in three years until yesterday. And each call he makes goes on to mark generational bottoms. He just told us ETH has bottomed.”

Beyond pure technical patterns, market structure indicators are also flashing bullish signals. Investor Ted Pillows observed on Sunday that Ethereum Open Interest (OI) – the value of open Ether options contracts yet to be settled – has declined 45% from its peak, while Ethereum’s price is only down 20% from its peak. According to Coinglass data, OI peaked at $21 billion in late August before the current decline. This divergence creates what Pillows describes as “a very bullish thing, as speculation is now very low.”

The reduced Open Interest suggests that if ETH rallies from current levels, it could advance significantly without encountering the overheating that typically accompanies highly speculative markets. Pillows predicts that based on current market conditions, ETH could pump toward $5,500 to $6,000 “without getting too overheated,” representing a potential 35-48% increase from current levels. This combination of strong technical foundations, recognized bullish patterns from respected analysts, and favorable market mechanics creates what multiple experts see as a recipe for substantial upward movement in the coming weeks and months.