Ethereum Trades Inside A Multi-Year Bullish Pennant – Analyst Sees A Breakout Above $4K
2025-02-07
Category: None

Ethereum experienced one of the craziest days in its history last Monday, plunging over 30% in less than 24 hours amid widespread market panic fueled by U.S. trade war fears. However, within hours, ETH staged an impressive recovery following President Trump’s announcement of negotiations with Canada and Mexico to ease tariff concerns. This sharp rebound has reignited optimism among investors, with many now closely watching Ethereum’s next move.
Despite the recent volatility, top analyst Jelle shared a technical analysis revealing that Ethereum is still trading within a massive bullish pennant that has been forming since 2021. This long-term structure suggests that ETH remains in a consolidation phase, building momentum for a breakout. According to Jelle, once Ethereum decisively breaks out of this pattern, a massive rally into price discovery is expected.
As the market stabilizes and investors reassess their positions, ETH remains one of the most closely watched assets. While short-term price action is unpredictable, the long-term bullish structure provides strong support for Ethereum’s growth potential. Traders and analysts alike are now looking for key technical signals that could confirm a breakout and propel ETH into new all-time highs.
Ethereum Struggles Below Key Supply Levels
Ethereum is currently facing serious selling pressure, struggling to reclaim the crucial $3,000 mark. Bulls are in trouble as ETH remains trapped below this level, leading to heightened uncertainty and volatility in the market.
 Every day that Ethereum trades below $3,000 increases the likelihood of a deeper correction, as traders remain cautious and sentiment weakens. The inability to gain momentum above this psychological level has left investors concerned about ETH’s short-term direction.
However, despite the ongoing struggles, top analyst Jelle shared a technical analysis on X, revealing that Ethereum is still trading inside a massive bullish pennant. According to Jelle, ETH has deviated from both the highs and the lows of the pattern, and now the market is setting its direction to tag key supply levels. This means that while short-term price action remains uncertain, Ethereum’s long-term structure suggests that a breakout could be on the horizon.
Jelle believes that once Ethereum manages to push above the bullish structure, a break above the $4,000 mark will follow. This breakout would confirm a rally into price discovery, setting the stage for Ethereum to reach new all-time highs. While bears remain in control for now, the long-term bullish formation suggests that ETH could be gearing up for a major move in the coming months.
Price Action Details: Technical Levels 
Ethereum is currently trading at $2,820, still unable to test the critical $3,000 level. Price action remains weak, as ETH struggles to break above the $2,900 mark, which has now turned into a short-term supply zone. The failure to push higher signals that bulls are losing momentum, and the market remains in a state of uncertainty.
If Ethereum loses the $2,800 support level, a deeper correction could unfold, potentially dragging the price down to the $2,500 region. This would be a significant setback for bulls, as it would confirm further downside pressure and could extend the current consolidation phase.
On the other hand, if ETH manages to reclaim the $3,000-$3,100 level in the coming days, it would signal renewed bullish momentum. A successful breakout above this range could ignite a massive surge, pushing Ethereum toward higher supply levels and setting the stage for a potential run toward $3,500 and beyond.
For now, Ethereum remains at a crucial juncture, with price action signaling both risk and opportunity. Traders and investors are closely watching key resistance and support levels, as ETH prepares for its next major move.
Featured image from Dall-E, chart from TradingView