As the long-term bull case builds, ETH traders are looking to $10K.

The key takeaways

• The bullish pattern in the ETH chart indicates a rise to $10,000 with $5,000 being the key resistance level.

• The analysts say the short-term volatility of ETH could be a precursor to its multi-year bullish growth phase.

• Short position liquidation of $5 billion could be triggered by a rally up to $5,100.

EtherETHJelle, a crypto analyst continues to see bullish signals. highlighting A “megaphone pattern” On the weekly chart, the target is $10,000.

Megaphones, or broadening patterns, are price movements with increasing highs and decreasing lows. The breakout of resistance can lead to explosive rallying, but if the momentum stops it could also become bearish.

The immediate resistance is still at $5,000. If you extend your position beyond this level, it would result in a liquidation of approximately $5 billion In the cumulative short position, it is possible to extend the rally.

In the event that the $5k threshold isn’t cleared, the market could pull back towards the SMA of 12 weeks (blue line) at $3,500. Or, the lower support level for the pattern would be $3,000 which also coincides with 25-weekly moving averages (orange lines). The volume confirmation is critical, since weak participation can lead to a false breakout.

Crypto trader Merlijn emphasized The possibility of a breakout bullish was raised and it was noted that ETH is facing a thick sell wall around $5,100. “the kind of level whales dream about.”

The trader is expecting liquidity in this area to act as an attractor, destroying overleveraged shorts. “Play the hunter, not the hunted,” Merlijn indicated that whales may drive prices into this liquidity pocket.

Related: Ethereum‘s best month ever puts $7K ETH price within reach

Analysts believe ETH can stay “bullish for years”

Jackis is a technical market analyst who believes that the short-term movements of markets are largely ignored. argued The ETH currency is “insanely bullish for years to come,” It is worth noting that this asset broke recently out of the 4.5 year accumulation zone for institutional assets. 

Analysts claim that the four-year period prior to December 2024 effectively came to an end, opening the door for a structural expansion phase.

Jackis does warn of mid-term shaking outs that could precede the next upward leg. ETH is testing the sixth diagonal resistance trendline, which has historically been broken after multiple attempts.

An even deeper correction, like Bitcoin’s $25,000 in the middle of 2023, may trigger fear-driven sales before the uptrend resumes. It is also important to track the correlation between Bitcoin, Ether and other cryptocurrencies.

According to Ecoinometrics despite ETH’s recent outperformance it is still strongly correlated with BTC. The market analysis platform X posted a post on its blog. said, 

“ETH is holding up better than BTC in price terms, but the correlation tells a different story. Over the past five years, ETH’s correlation with BTC has averaged above 0.8 and today it’s still right around that level.”

Jackis emphasizes the fact that, despite any near-term corrections in prices, Jackis’ long term outlook will remain intact. Acceptance above 2021’s all-time highests of $4.880 will signal an immediate continuation.

Related: BlackRock Bitcoin ETF holdings overtake Coinbase, Binance; ETH may be next

The article is not intended to provide investment advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.