NAIROBI (CoinChapter.com) — Ethereum (ETH) has broken through a critical resistance level that once sent its price tumbling by over 79% during its 2022 bear market. Analysts suggest this breakout marks the end of a three-year consolidation period, potentially setting the stage for a bullish price action.
A Three-Year Pattern Breaks as ETH Reclaims Momentum
Ether’s price recently surged past the $3,800 resistance, confirming the completion of a long-term symmetrical triangle on the weekly chart. Analyst Quinten Francois described the move as the “waking up” of a sleeping giant. Ethereum, now trading at $3,669, has rallied by 47% since the start of November.
Crypto analyst Venturefounder also noted that Ethereum appears to be finalizing a “cup and handle” formation. If the $3,800 resistance holds as support, analysts predict ETH could climb toward $5,349 and $7,238 by the end of Q1 2025. This would represent a 97% increase from current price levels.
Institutional Inflows and Whale Accumulation Support ETH Rally
Ethereum’s bullish breakout is underpinned by growing institutional demand and whale activity. On Nov. 29, Ethereum-focused exchange-traded funds (ETFs) in the U.S. recorded $332.9 million in daily inflows, a new high. BlackRock’s iShares Ethereum Trust and Fidelity’s Ethereum Fund contributed $250 million and $79 million, respectively. These inflows signal increased confidence among institutional investors.
At the same time, large Ethereum holders have ramped up their accumulation. Data shows whales holding between 100,000 and 1,000,000 ETH acquired 280,000 ETH—valued at nearly $1 billion—in just four days.
The accumulation coincides with Ethereum’s futures open interest on the Chicago Mercantile Exchange (CME), which hit an all-time high of $2.8 billion. The rising futures premium at 14% reflects growing market optimism.
Macro Trends Add Fuel to Ethereum’s Momentum
Despite Ethereum’s rally, the U.S. Dollar Index (DXY) remains a crucial factor in its performance. Venturefounder noted that ETH’s price has yet to “explode” due to the DXY maintaining strength. Historically, crypto markets thrive when the dollar weakens. A potential DXY breakdown could act as a catalyst for Ethereum’s next leg higher.
Meanwhile, pseudo-crypto analyst Titan of Crypto pointed to historical patterns, suggesting Ethereum’s cycle peak could range between $7,800 and $9,900, based on the 141.40% Fibonacci extension. Ethereum could approach the $10,000 mark if history repeats during this cycle.
Separately, Doctor Profit described ETH as undervalued below $4,000, suggesting the current price offers an entry point for mid-term investors.
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