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Ethereum is on the verge of a significant breakout as it completes a rare descending broadening wedge on the weekly chart, signaling potential gains above $6,000.
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Whale accumulation has surged, with over 1.13 million ETH added in just two weeks, underscoring strong institutional confidence ahead of the anticipated breakout.
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According to COINOTAG sources, increasing weekly momentum and volume reinforce the bullish setup, suggesting Ethereum’s price could soon test new highs.
Ethereum’s descending wedge and whale accumulation point to a breakout above $6,000, supported by rising momentum and volume on the weekly chart.
Ethereum’s Descending Broadening Wedge Signals Imminent Breakout
Ethereum’s weekly chart reveals a textbook descending broadening wedge, a technical pattern characterized by progressively lower lows paired with a horizontal resistance line. This formation often precedes strong upward price movements, marking the end of consolidation phases. Currently, Ethereum is approaching the critical resistance level near $3,740, which has historically capped upward momentum.
Technical analyst Titan of Crypto highlights that Ethereum’s price action has closely followed this wedge pattern, oscillating between its upper and lower boundaries with precision. A decisive breakout above this resistance, confirmed by a retest turning resistance into support, would validate the pattern and likely trigger a significant rally.
Whale Accumulation Reinforces Bullish Sentiment
Supporting the technical outlook, recent on-chain data indicates robust accumulation by Ethereum whales. As reported by analyst Ali (@ali_charts), large holders have purchased over 1.13 million ETH in the past fortnight, representing approximately $4.18 billion in value. This substantial buying activity reflects growing institutional confidence and often precedes upward price momentum.
Historically, whale accumulation aligns with bullish market phases, providing a strong foundation for price appreciation. Coupled with the wedge formation, this surge in buying pressure enhances the probability of a breakout scenario.
Volume and Market Conditions Favor Further Upside
Volume analysis reveals a notable increase in trading activity, a critical factor in confirming breakout patterns. Rising volume during the final stages of wedge formations typically signals strong market conviction and the likelihood of a sharp price move.
Despite this momentum, Ethereum’s funding rates remain below levels observed in previous bull runs, indicating that the market is not yet overheated. Crypto Rand notes that this leaves ample room for bullish momentum to build, potentially propelling Ethereum toward the $5,000 to $6,000 range as projected by the wedge’s breakout target.
Conclusion
Ethereum’s completion of a descending broadening wedge, combined with significant whale accumulation and rising volume, sets the stage for a potential breakout above $3,740. Should this occur, Ethereum could embark on a strong upward trajectory targeting $5,000 to $6,000. Investors and traders should monitor these key technical levels and volume trends closely to capitalize on this developing opportunity.
