Ethereum has been trading just above $3,300 per ETH again for the past week, in a slow bullish extension. After months of major fluctuations and failed follow-throughs above $3,000, the structure on the monthly timeframe chart starts to look bullish in a way that traders must take this seriously.
A recent technical glitch shared by Merlijn The Trader on
Bullish Pennant says bullish momentum is about to be unlocked
The chart showing Merlin’s technical analysis shows a bullish pennant developing on Ethereum’s monthly time frame. This bullish pennant shows that price action has been compressed between a rising support line and a falling resistance line, and this has created a constricting structure since 2021.
Related reading
Ethereum briefly rose above the upper limit of this pennant in 2025, rising to just below $5,000 before momentum faded and corrective action followed. Since then, price action appears to be returning to the former resistance line, which now serves as a key area of interest. As it stands, Ethereum is now retesting the upper trendline of this bullish pennant for one final upward move.
Based on this projection, the first major barrier Ethereum needs to break is around $3,300. A clear break above that level would likely open a path to $3,600, an area that has previously acted as a turning point during previous rallies. However, the most affected zone is around the August 2025 all-time high of $5,000. A break above this zone would unlock bullish momentum based on the bullish pennant and will take place in most of 2026.
How could this outbreak play out?
Merlin’s chart does not stop at the breakout trigger once it crosses above the pennant’s upper trendline. It lays out a full roadmap for how the move could unfold once Ethereum leaves the pennant. The first step in that projection is a push above $3,600 before a more meaningful test around $5,000. Once Ethereum can break above $5,000, the door will be open for new price highs.
Related reading
However, the outbreak is expected with volatility and retests, not a straight line upwards, but still resolves higher if the pennant theorem holds.
Starting at $5,000, the projection turns into a two-phase expansion. The first phase shows a force move, with Ethereum rallying to $6,000, only to break through another sharp dip to $4,000 and recover again before heading higher. The larger part, projected higher on the chart, points to $8,400 as the final price target zone for Ethereum.
Featured image from Getty Images, chart from Tradingview.com