Ethereum has broken its three-year downtrend, entering a bullish retest near $3,900, signaling a major reversal. Analysts forecast targets of $7,000 to $8,000 by 2026, driven by strengthened momentum and liquidity in the Ethereum network.
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Ethereum breaks 3-year downtrend, confirming long-term bullish reversal with higher lows and increased buyer participation.
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Current retest phase near $3,800–$3,900 shows strong volume and neutral RSI, indicating sustained upward potential.
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Projections align with historical patterns, targeting $7,000–$8,000 by 2026 amid rising institutional interest and market capitalization of $468.66 billion.
Ethereum breaks three-year downtrend in bullish retest near $3,900, eyeing $7K–$8K by 2026. Discover key signals and analyst insights for ETH’s next rally. Stay informed on crypto trends today!
What Does Ethereum’s Break Above the Three-Year Downtrend Mean?
Ethereum’s break above the three-year downtrend represents a pivotal shift in its long-term price structure, confirming a bullish reversal after years of correction. This breakout, observed in weekly charts, follows an ascending triangle pattern formed since 2021, with the asset now stabilizing above key resistance levels. Supported by rising investor confidence, Ethereum’s price has reached approximately $3,882.94, up 1.27% daily, reflecting renewed market strength.
How Is the Bullish Retest Progressing Near $3,900?
The bullish retest near $3,900 follows Ethereum’s rally to $4,500 and subsequent stabilization, aligning with classic continuation patterns in technical analysis. Trading volume has surged during upward movements, bolstered by institutional and retail participation, while the Relative Strength Index (RSI) hovers around 47, signaling neutral but building momentum. According to CoinMarketCap data, Ethereum’s market capitalization stands at $468.66 billion, underscoring its dominant position in the cryptocurrency space.
This retest phase validates the breakout’s integrity, as Ethereum holds above the former descending trendline that had constrained prices since the 2021 all-time high. The ascending triangle, characterized by repeated tests of resistance and progressively higher lows, demonstrates persistent buying pressure from market participants. Analyst Ardizor notes that this structure points to substantial upside, with potential price targets between $7,000 and $8,000 by 2026, fueled by improving on-chain liquidity and network upgrades.
$ETH
3-YEAR DOWNTREND BROKEN
BULLISH RETEST IN PROGRESS
MASSIVE PUMP INCOMING pic.twitter.com/OY6enhQXxI— ardizor (@ardizor) October 22, 2025
Historical precedents in Ethereum’s price action, such as post-halving rallies in related assets, further support this outlook. The completion of an ABC corrective wave after a strong upward impulse has positioned Ethereum for what experts describe as a “powerful break upwards.” Matthew Dixon, a market analyst, observes that Ethereum’s chart presents a “clear and encouraging picture,” expecting broader market correlation as liquidity inflows continue.
Frequently Asked Questions
What Are the Key Factors Behind Ethereum’s Three-Year Downtrend Break?
Ethereum’s break stems from sustained higher lows in an ascending triangle pattern since 2021, culminating in a decisive move above multi-year resistance. Increased trading volume and neutral RSI readings confirm buyer control, while on-chain metrics show rising participation, setting the stage for targets up to $8,000 by 2026 per analyst projections.
Is Ethereum’s Bullish Retest Near $3,900 a Buy Signal for Investors?
Yes, the bullish retest near $3,900 acts as a confirmation of the downtrend break, with strong support from $3,600 levels and Elliott Wave completions pointing to further gains toward $4,400 short-term. This phase, marked by stable liquidity and institutional interest, offers a strategic entry for long-term holders monitoring Ethereum’s momentum.
Key Takeaways
- Downtrend Break Confirmed: Ethereum’s weekly charts show a clear breakout from the 2021-2025 descending line, validating long-term bullish reversal with $468.66 billion market cap.
- Retest Signals Strength: Holding above $3,800–$3,900 amid rising volume and RSI at 47 indicates buyer dominance and potential for immediate rallies to $4,400.
- Future Projections: Analysts like Ardizor and Matthew Dixon foresee $7,000–$8,000 by 2026; monitor liquidity and network activity for entry opportunities.
Conclusion
Ethereum’s break above the three-year downtrend and ongoing bullish retest near $3,900 underscore a transformative phase for the asset, backed by technical patterns and expert analysis from sources like CoinMarketCap and market observers. As momentum builds toward 2026 targets of $7,000 to $8,000, investors should track volume trends and support levels to capitalize on this reversal. With Ethereum’s foundational role in decentralized finance, this development promises sustained growth in the evolving crypto landscape.
