Ethereum May Rally After Breaking Megaphone and Retesting $4,270 Support as MACD Signals $6,800–$7,000 Potential

• Ethereum broke a four-year bullish megaphone, retested $4,270 support and targets $6,800–$7,000.

• Weekly MACD crossover and measured pattern extensions support further upside momentum.

• Historical August closes and volume confirm the breakout; immediate resistance sits at $4,800 after a 7.7% rebound.

Ethereum megaphone breakout confirmed after $4,270 retest; view targets of $6,800–$7,000 and trade plans. Read analysis and next steps.

Ethereum breaks a 4-year bullish megaphone, retests $4,270 support, with targets at $6,800–$7,000 as MACD crossover confirms momentum.

Ethereum has broken a four-year bullish megaphone pattern and completed a clean retest of breakout support at $4,270. The structure’s measured extension targets a move toward $6,800–$7,000, reinforced by a weekly MACD crossover and supportive historical monthly-closing patterns.

What does the Ethereum megaphone breakout mean for price targets?

The Ethereum megaphone breakout signals a continuation pattern: price reclaimed breakout support at $4,270 and the measured extension projects targets near $6,800–$7,000. Confirmation comes from weekly MACD and volume behavior, while $4,800 serves as the near-term resistance to watch.

How reliable is the measured extension to $6,800–$7,000?

The projection uses a 60.90% extension from the pivot line of the megaphone. Historical respect for the megaphone boundaries and a confirming weekly MACD crossover add weight to the target. Traders should monitor volume on rallies and reclaim of $4,800 for conviction.

How has market history affected similar Ethereum setups?

Past monthly closes in August that ended green often preceded strong year-end rallies, including gains of 92.9% in 2017 and 25.3% in 2020, according to CoinGlass data. Conversely, red August closes historically averaged a -14.1% drawdown. These patterns add context but do not guarantee outcomes.

What do technical indicators show now?

The monthly MACD shows a bullish crossover, aligning with weekly momentum signals. Price action respected multiple pivot levels at $1,600, $2,800 and $3,600 before breaking above $4,800 and completing a clean retest near $4,270. At time of reporting, Ethereum traded near $4,621.

On-chain commentators and technical analysts noted a high near $4,797 before retracing to the retest. Measured breakout mathematics and momentum indicators point to the $6,800–$7,000 zone as the next technical target. The 7.70% bounce from ~$4,300 highlights immediate support strength.

Volume behavior during the breakout and retest supported the move. Analysts reference historical cycle behavior—including the 2,200% surge into 2021—when similar crossovers and structural confirmations occurred. Market participants should weigh fundamentals and macro liquidity alongside technicals.

Frequently Asked Questions

What is the immediate resistance to watch after the retest?

Immediate resistance sits at $4,800; reclaiming this level on rising volume would strengthen the case for a run toward the measured targets near $6,800–$7,000.

How should traders position around the megaphone breakout?

Traders can consider scaled entries near support levels, use tight risk controls below the clean retest at $4,270, and monitor MACD and volume for confirmation. Avoid overleveraging on the retest and plan exits near resistance zones.

Key Takeaways

• Breakout Confirmed: Ethereum broke and retested a four-year megaphone, validating the structure.
• Targets: Measured extension projects $6,800–$7,000; $4,800 is near-term resistance.
• Indicators: Weekly and monthly MACD crossovers plus historical monthly-close patterns support upside bias.

Conclusion

The Ethereum megaphone breakout and clean $4,270 retest present a technically bullish scenario with measured targets between $6,800–$7,000. Traders should watch volume and $4,800 resistance for confirmation, combine technical signals with on-chain data, and apply disciplined risk management.