Ethereum Nears $5K as Analysts Predict Bullish Breakout

Market expert Gert van Lagen has identified what he describes as a ‘textbook’ expanding diagonal pattern on Ethereum’s biweekly chart, signaling a potential reversal from a downtrend to an uptrend. This technical formation, characterized by a series of rising trend lines, emerges from connecting the lower points of downward movements—waves 2 and 4—with the upper points of waves 1, 3, and 5, creating a distinct triangular shape. According to van Lagen’s analysis, this pattern represents a fundamental shift in momentum for the Ethereum price from bearish to bullish, typically preceding significant upward breakouts.

The Ethereum price has demonstrated resilience throughout this formation, consolidating between $4,200 and $4,600 over the past month and a half. A brief dip to $3,800 on September 25th met substantial buying pressure, resulting in a swift recovery that reclaimed the crucial $4,000 support level. This price action reinforces the pattern’s validity and suggests strong underlying demand for the cryptocurrency at these levels, setting the stage for potential upward movement.

Van Lagen’s detailed wave analysis indicates that Ethereum’s Wave v is approaching completion, supported by a final corrective a-b-c wave structure. The analysis shows that Wave a successfully broke above the critical $3,650 resistance level, retested this level for support during the b wave, and is now positioned for the final impulse in wave c. This technical setup points toward ambitious price targets ranging from $9,000 to $18,000, representing potential gains of 100% to 300% from current levels.

Adding to the optimistic outlook, market analyst Mr. Wall Street has projected a more conservative but still substantial target range of $7,000 to $8,000 for Ethereum’s current cycle. Both analysts emphasize that Ethereum’s ability to surpass its previous record near the $5,000 mark will serve as a critical test for the bullish thesis. This level is expected to act as significant resistance, and a successful breach could validate the technical patterns and trigger accelerated upward momentum.

The Ethereum price surge occurs within a broader cryptocurrency market recovery, with Bitcoin leading the charge by approaching record levels above $120,000. This correlation highlights the interconnected nature of the cryptocurrency ecosystem, where Bitcoin’s performance often sets the tone for altcoins like Ethereum. The simultaneous strength in both major cryptocurrencies suggests institutional and retail confidence returning to the digital asset space.

Market analyst Michael van de Poppe provides additional context regarding timing, predicting that Bitcoin will experience an upward bounce in the coming weeks before undergoing a slight correction. Following this expected Bitcoin movement, he anticipates Ethereum will begin to gain significant momentum. ‘Given that the BTC pair is currently holding up well and has undergone a standard correction, I believe we will see Ethereum pick up steam in the near future,’ van de Poppe stated, suggesting that Ethereum may soon outperform its larger counterpart.

The convergence of technical patterns, wave analysis, and market timing creates a compelling case for Ethereum’s potential upward trajectory. However, all analysts agree that the $5,000 resistance level represents the immediate hurdle that must be cleared to confirm the bullish scenarios. As Ethereum trades just 9% below its all-time high, the coming weeks will prove decisive in determining whether these ambitious price targets become reality or if resistance levels prove too formidable for the current rally.