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Ethereum (ETH) is exhibiting a classic Descending Broadening Wedge pattern on its weekly chart, signaling a potential major breakout reminiscent of its 2019 rally.
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Market analyst CryptoBullet highlights that ETH is testing this resistance for the third time, increasing the likelihood of a bullish surge in the current market cycle.
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According to CryptoBullet, a successful breakout above this wedge could propel ETH towards a macro cycle top between $8,000 and $10,000.
Ethereum’s weekly chart shows a descending wedge pattern with resistance tests, hinting at a breakout that could push ETH to $8K–$10K in the next cycle.
Ethereum’s Descending Broadening Wedge Signals Potential Bullish Breakout
Ethereum’s 1-week chart currently forms a Descending Broadening Wedge, a technical pattern that historically precedes significant upward price movements. This pattern closely mirrors the structure seen during the 2019–2020 cycle, which led to one of Ethereum’s most notable rallies. Since the 2021 cycle peak, ETH has been consolidating within this expanding wedge, characterized by progressively lower highs and lower lows. The repeated testing of the wedge’s upper resistance line now suggests that ETH is poised for a potential breakout, which could mark the beginning of a new bullish phase.
Repeated Resistance Tests Increase Probability of Breakout
CryptoBullet’s analysis emphasizes that ETH is currently challenging the wedge resistance for the third time, a critical juncture in technical analysis. Multiple resistance tests often indicate that selling pressure is weakening, increasing the chance of a decisive breakout. This scenario is further supported by the formation of higher lows, which points to strengthening buyer interest. Should Ethereum close a weekly candle above this resistance, it would confirm the breakout and potentially trigger increased buying momentum, setting the stage for a strong upward trend.
Potential Price Pullback Could Serve as a Healthy Reset
Despite the bullish setup, CryptoBullet also warns of a possible short-term pullback ranging from 10% to 15%. This correction could act as a liquidity reset, clearing out weaker hands and consolidating gains before the next rally. Such pullbacks are common in wedge patterns and often precede significant price advances. Investors should consider this possibility as part of the natural ebb and flow of market dynamics, rather than a reversal of the overall bullish trend.
Targeting $8,000 to $10,000 as Next Macro Cycle Peak
Using Fibonacci extension analysis, CryptoBullet projects Ethereum’s next major cycle top to fall between $8,000 and $10,000. These levels correspond to 1.618 and 2.618 extensions of previous impulse waves, aligning with long-term resistance zones. This confluence of technical indicators strengthens the credibility of these targets as probable price ceilings for the current cycle. At the time of writing, Ethereum is trading near $3,715, showing steady gains and positive momentum that could support this ambitious price trajectory.
Conclusion
Ethereum’s weekly chart pattern and repeated resistance tests suggest a high probability of a bullish breakout, potentially initiating a new upward cycle. While a short-term pullback may occur, the overall technical setup supports a strong rally targeting $8,000 to $10,000 as the next cycle top. Investors should monitor weekly closes above the wedge resistance for confirmation and prepare for increased volatility as ETH approaches these key levels.
