Ethereum (ETH) has officially broken free from a prolonged consolidation phase lasting over three years, sparking renewed optimism across the crypto market. After several failed attempts, ETH has finally surged above the $4,000 resistance level, signaling what many analysts believe could be the start of a major bull run toward $7,000 and beyond.
Ethereum Confirms a Long-Awaited Breakout
According to popular crypto analyst Mags, Ethereum’s breakout marks a crucial turning point. After more than 1,146 days of sideways trading since its previous peak, ETH has successfully reclaimed the $4,000 zone — a resistance level that has historically capped its price.
Mags noted that Ethereum had tried to break this barrier three times before, only to face sharp rejections. However, the fourth attempt, made in August 2025, confirmed a decisive breakout. The analyst now expects ETH to climb toward the 1.618 Fibonacci extension level, placing the next potential target near $7,331.
This price point aligns with Ethereum’s broader bullish structure, suggesting that the asset could be entering a new phase of sustained growth.
A Strong Foundation Around the $4,000 Level
Following its breakout, Ethereum has held firm above the $4,000 support area, showing signs of strong buyer confidence. The consolidation around this level reflects market stability and indicates that investors are accumulating ETH rather than taking profits.
Mags also highlighted a V-shaped recovery earlier this month when Ethereum briefly dipped below $4,000, touching $3,800 before quickly rebounding. This swift reversal underscores the presence of strong demand and buying momentum, which could fuel the next upward leg toward higher resistance levels.
Technical indicators support this view, showing increased accumulation and strong support zones forming across major exchanges.
Analysts Confirm a Major Structural Retest
Another respected analyst known as Galaxy pointed out that Ethereum recently completed a successful retest of a long-term triangle pattern that has been developing since 2021. According to Galaxy, this “V-bottom” structure indicates that Ethereum has completed its base-building phase and may now be gearing up for the next expansion cycle.
“The structure is holding strong,” Galaxy explained, adding that while short-term corrections are possible, the long-term picture for ETH remains decisively bullish. The analyst believes Ethereum could eventually aim for five-digit valuations if the current uptrend continues into 2026.
Market Sentiment Turns Bullish
Ethereum’s breakout has reignited enthusiasm in the broader crypto ecosystem. Trading volumes have increased steadily since the move above $4,000, and on-chain data shows rising activity from both institutional and retail investors.
Whale accumulation has also intensified, with large ETH holders expanding their positions — a trend often seen before major price surges. Moreover, Ethereum’s network fundamentals remain robust, with growing demand for DeFi applications, staking, and tokenized assets driving additional utility for the token.
Macro and Technical Alignment
From a macro perspective, Ethereum’s bullish momentum coincides with improving market liquidity and positive sentiment across digital assets. Analysts also point to the expanding global M2 money supply as a supporting factor that could drive further price appreciation for Ethereum and other major cryptocurrencies.
Technically, the breakout aligns with historical patterns where long periods of consolidation are followed by powerful upward movements. The alignment between on-chain strength, technical indicators, and macro trends paints an optimistic picture for Ethereum’s medium-term outlook.
Road to $7,000 and Beyond
Despite the bullish outlook, analysts caution that the path to $7,000 won’t be linear. Periods of consolidation, pullbacks, and sideways trading are expected as Ethereum digests its recent gains. However, the overall structure remains intact, and the sentiment among traders is increasingly confident.
If Ethereum maintains support above $4,000 and continues to attract institutional inflows, it could reach the $7,000 region sooner than expected. Beyond that, analysts see potential for even higher valuations, especially if the next cycle mirrors historical patterns seen in 2017 and 2021.
As of now, Ethereum’s renewed strength suggests that its multi-year breakout is more than just a short-term rally — it could mark the beginning of a transformative bullish phase that redefines the crypto landscape heading into 2026.
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