Ethereum is back to just above $3,300 per ETH in a slow bullish extension over the past week. After months of great oscillations and failed follow-ups above $3,000, the structure on the monthly chart is starting to look bullish in a way that traders should take it seriously.
A recent technical breakdown shared by Merlijn The Trader on
Bullish Pennant indicates bullish momentum is about to be unlocked
The chart showing Merlijn’s technical analysis shows a bullish pennant forming on Ethereum’s monthly time frame. This bullish pennant shows that price action has compressed between an ascending support line and a descending resistance line, which has created a narrowing pattern since 2021.
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Ethereum briefly broke the upper limit of this pennant in 2025, climbing back just below the $5,000 mark before momentum faded and corrective action followed. Since then, price action appears to be moving back towards the old resistance line, which is now a key area of interest. As it stands, Ethereum is currently retesting the upper trendline of this bullish pennant for one final upward move.
Based on this projection, the first major barrier for Ethereum to break is around $3,300. A clear break above this level would likely open the way towards $3,600, an area that has already served as a turning point in previous rallies. The most important area, however, is around the all-time high of $5,000 reached in August 2025. A break above this area would unlock bullish momentum based on the bull pennant and will play out for most of 2026.
How can this breakout take place?
The Merlijn chart does not stop at the breakout trigger once it crosses the pennant’s upper trendline. It outlines a comprehensive roadmap for how the movement could unfold once Ethereum leaves the pennant. The first step of this projection is a push above $3,600 before a more significant test around $5,000. Once Ethereum is able to surpass $5,000, the door is then open to new price highs.
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However, the breakout is expected coming with volatility and retests, not a straight line upward, but always resolves higher if the pennant thesis holds.
Starting at $5,000, the projection turns into a two-stage expansion. The first stage shows a strength move, where Ethereum skyrockets up to $6,000, then goes through another sharp decline up to $4,000 and another recovery streak before the biggest rise. The wider leg, projected higher on the chart, indicates $8,400 as the final price target area for Ethereum.
Featured image from Getty Images, chart from Tradingview.com
