The chart showing the technical analysis from Merlijn shows a bullish pennant forming on Ethereum’s monthly timeframe. This bullish pennant shows that price action has been compressing between a rising support line and a descending resistance line, and this has created a narrowing structure since 2021.
Ethereum briefly pushed above the upper boundary of this pennant in 2025, rallying to just under the $5,000 mark before momentum faded and corrective moves followed. Since then, price action appears to be gravitating back toward the former resistance line, now acting as a key area of interest. As it stands, Ethereum is now retesting the upper trendline of this bullish pennant for a final upward move.
How Can This Breakout Play Out?From $5,000, the projection turns into a two-stage expansion. The first stage shows a force move, where Ethereum goes on a rally to as high as $6,000, then chops through another sharp dip to $4,000 and another recovery sequence before the larger leg higher. The larger leg, higher projected on the chart, points to $8,400 as the final price target zone for Ethereum.
