Ethereum’s journey to this pivotal moment has been characterized by persistence and technical significance. After spending 1,146 days consolidating from its bottom, the cryptocurrency finally achieved what three previous attempts had failed to accomplish: a decisive breakout above the crucial $4,000 level. This multi-year consolidation phase represented one of the longest periods of price compression in Ethereum’s history, creating substantial pent-up energy in the market.

The breakthrough, which occurred in August, marks a critical turning point for ETH. Each of the three prior attempts to surpass this resistance level ended in rejection, creating a pattern of frustration for bullish investors. However, the fourth attempt proved successful, confirming the breakout and signaling what technical analysts describe as the beginning of a new bullish phase. The significance of this move cannot be overstated, as it represents the culmination of years of building pressure and market anticipation.

Following the breakout, Ethereum has been consolidating above the $4,000 zone, building momentum for what analysts believe could be the next leg upward. The stability around this level indicates that buyers are actively defending support, keeping the broader structure intact and setting the stage for potential continuation toward higher targets. This consolidation above former resistance now turned support demonstrates healthy market dynamics.

Prominent crypto analyst Mags recently shared a bullish update on X, noting that ETH could be on track to reach the $7,331 mark. According to Mags, this target aligns with the broader bullish trend that has been forming since Ethereum’s breakout above key resistance levels. The analyst specifically identified the 1.618 Fibonacci extension level at $7,331 as a likely target that could define the next major wave in Ethereum’s ongoing rally.

Adding to the technical validation, Galaxy, another prominent crypto analyst, observed that the ETH chart has successfully retested the ‘V-bottom’ structure along with the major triangle pattern dating back to 2021. This successful retest signals that the asset may be entering a new growth phase after consolidating for an extended period within these key technical formations, providing additional confirmation of the bullish structure.

The path to higher prices hasn’t been entirely smooth, with Ethereum experiencing a brief fakeout where the price dipped below $4,000 to reach $3,800 before staging a sharp V-shaped recovery. This rebound, driven by strong buying pressure, actually strengthened the bullish outlook by demonstrating robust demand at lower levels. The V-shaped recovery from the $3,800 fakeout served as a powerful confirmation of underlying market strength.

While Galaxy acknowledged that the road ahead won’t be without challenges—including potential dips, periods of choppy price action, and stretches of low volatility—the overall outlook remains highly optimistic. The analyst believes that Ethereum is gradually positioning itself for a major move upward, with the current structure suggesting that a five-digit ETH price is becoming an increasingly realistic target in the future.

The combination of technical factors—the successful breakout after 1,146 days, the V-bottom retest, the strong recovery from the fakeout, and the building momentum above $4,000—creates a compelling case for Ethereum’s continued upward trajectory. As the market structure continues to evolve, the alignment of these technical indicators suggests that Ethereum may be entering one of its most significant growth phases since the 2021 cycle, with the $7,000 region representing just the initial target in what could become a much larger move.