FameEX Hot Topics | Analyst: ETH Could Stay Bullish for Years as Megaphone Pattern Signals $10K Target

Ethereum (ETH) traders believe a new multi-year bullish cycle is underway, with $10,000 emerging as the next major long-term target. Recent price action continues to show strong technical signals, reinforcing optimism that ETH could embark on a prolonged expansion phase if key resistance levels are cleared.

Analyst Jelle has pointed to a developing megaphone pattern on ETH’s weekly chart, a formation characterized by increasingly wide price swings and higher highs alongside lower lows. Historically, a breakout above the upper boundary of this pattern has triggered powerful rallies. While ETH faces immediate resistance at $5,000, a decisive move above this level could liquidate roughly $5 billion in short positions, potentially fueling the next leg of the rally.

Still, risks remain if ETH fails to break through resistance. A rejection near $5,000 could see prices revisit support levels around the 12-week simple moving average (SMA) at $3,500 or even the 25-week SMA near $3,000. Analysts stress that strong trading volume is necessary to confirm a legitimate breakout; otherwise, the move risks becoming another false signal. Trader Merlijn echoed this caution, noting that ETH faces a dense sell wall around $5,100 — a level he described as “the kind of price whales dream about.”

Beyond the short-term setup, technical analyst Jackis argues ETH is “insanely bullish for years to come.” He highlights that ETH recently broke out of a 4.5-year accumulation range largely dominated by institutional investors, a structural shift that could lay the foundation for an extended rally. According to Jackis, the previous four-year cycle concluded in December 2024, opening the door for a new phase of long-term growth.

However, Jackis warns that shakeouts are still likely before ETH advances higher. The asset has been repeatedly rejected near its all-time highs and is now testing its sixth diagonal trendline resistance. Historically, these trendlines tend to break after multiple retests, but sharp pullbacks into support may occur first. Such retracements could mirror Bitcoin’s 2023 correction to $25,000, sparking temporary fear before the broader uptrend resumes. Analysts emphasize that ETH’s performance remains closely tied to Bitcoin’s trajectory, making correlation an important factor to monitor.

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