FameEX Hot Topics | Ethereum May Rally Toward $10K with Long-Term Bullish Megaphone Setup, Analyst Says

Ethereum (ETH) traders are increasingly convinced that a fresh multi-year bullish cycle has already begun, with ambitious targets stretching as high as $10,000. The renewed optimism is supported by technical structures that suggest ETH could be gearing up for another period of explosive growth, provided key resistance levels are broken in the near term.

One of the most closely watched patterns is the megaphone formation identified by crypto analyst Jelle. This broadening structure, visible on ETH’s weekly chart, reflects expanding price swings marked by higher highs and lower lows. Historically, when assets break out of such a pattern, it often leads to dramatic upside moves. For ETH, the critical test lies at the $5,000 level. A breakout above this resistance could liquidate approximately $5 billion in cumulative short positions, potentially accelerating ETH’s rally deeper into the megaphone’s trajectory toward $10,000.

Still, traders remain cautious. If ETH fails to push through the $5,000 barrier, downside risks emerge, with likely pullbacks toward the 12-week simple moving average (SMA) at $3,500 or the 25-week SMA near $3,000. Analysts stress the importance of volume confirmation, as weak participation could increase the likelihood of a false breakout. Trader Merlijn highlighted the significant sell wall around $5,100, describing it as “the kind of level whales dream about,” underscoring the challenge bulls face.

In the bigger picture, technical analyst Jackis believes ETH is “insanely bullish for years to come.” He argues that ETH recently broke out of a 4.5-year accumulation phase dominated by institutions, signaling the end of the previous four-year cycle in December 2024. This breakout, he contends, marks the start of a new structural expansion period that could redefine ETH’s long-term trajectory.

However, Jackis also warned that mid-term shakeouts are inevitable before ETH resumes its next leg higher. The cryptocurrency has faced repeated rejections near its all-time highs and is currently pressing against its sixth diagonal trendline resistance. Historically, such levels eventually break after multiple tests, but not without volatility. A deeper retest, similar to Bitcoin’s 2023 dip to $25,000, could trigger temporary panic before fueling the larger uptrend. Analysts agree that ETH’s future remains closely tied to Bitcoin’s moves, making correlation between the two a key metric to watch.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.