Ethereum, the world’s second-largest cryptocurrency by market capitalization, is on the verge of a significant breakthrough, according to recent analyses. With technical indicators aligning across multiple timeframes, Ethereum seems poised to enter five-figure territory, a development that has traders and investors buzzing with anticipation.
Ethereum Ready To Smash All-Time Highs
In a detailed analysis shared today by Cantonese Cat, a well-known cryptocurrency trader, Ethereum has successfully cleared a cluster of late-cycle resistances. This achievement sets the stage for a potential rally that could see ETH soaring to unprecedented heights. According to the trader’s multi-timeframe analysis, several technical signals are converging to favor higher targets. Specifically, Fibonacci retracement levels suggest Ethereum could reach prices of $7,752, $9,883, and even $14,011.
A key focus of Cantonese Cat’s analysis is Ethereum’s performance on the monthly chart, particularly its interaction with the log-scale Fibonacci structure and volatility regime. The cryptocurrency had previously stalled around the 0.886 retracement near $4,000, a resistance point that had historically thwarted upward momentum. However, last month saw a decisive break through this barrier, indicating a potential trend shift.
Technical Indicators Flash Bullish Signals
The technical landscape for Ethereum is further bolstered by indicators like the monthly Bollinger Bands, which are expanding—a sign typically associated with trend acceleration. The price is moving impulsively upward along the upper Bollinger Band, reinforcing the bullish outlook. Cantonese Cat notes that while Ethereum needs to surpass its previous all-time high before aiming for higher levels, the current setup is promising.
Adding to this bullish sentiment is the Ichimoku profile across various cycles. The fusion of Tenkan-sen and Kijun-sen lines, a phenomenon known as “Katana,” has historically led to significant price movements. With Ethereum’s price riding above this fusion point, the analyst believes the stage is set for a substantial rally.
A Three-Cycle Template on the Weekly Chart
On the weekly timeframe, Cantonese Cat introduces a three-cycle template that outlines Ethereum’s path through a “cycle liquidity zone.” This zone acts as a pivot, with previous cycles displaying deviations above and below a trend line before sustaining upward movements. Currently, Ethereum is consolidating within this zone, searching for momentum to break higher. While a back-test of lower levels could occur, the primary expectation is for continuation of the upward trend unless invalidated by the chart.
Lower Timeframe Signals: A Convergence of Patterns
Drilling down into the lower timeframes, Ethereum’s daily chart reveals an “Adam and Eve continuation pattern” nestled within a classic cup-and-handle formation. This pattern, coupled with a bullish engulfing candle, indicates a strong potential for upward movement. Price levels are respecting log-scale retracements, with Ethereum attempting to break through significant resistance levels.
Notably, the presence of a “tweezer bottom” and a “morning star” reversal pattern on the daily chart further supports the bullish case. These patterns suggest a potential reversal and continuation of the upward trajectory, aligning with the broader bullish narrative.
Market Dynamics and Broader Implications
Ethereum’s relative strength within the market is also noteworthy. Its market-share gauge (ETH.D) has broken above the Ichimoku cloud and successfully back-tested it, implying strong support for future gains. On a broader scale, the Total3 index, representing the total crypto market cap excluding Bitcoin and Ethereum, is attempting to form an all-time high on a monthly “cup and handle” structure. Meanwhile, the “Others” index, which excludes the top 10 coins, has surpassed key resistance levels, hinting at potential growth in the altcoin market.
While the outlook for Ethereum appears overwhelmingly positive, it’s crucial to maintain a balanced perspective. The cryptocurrency market is notorious for its volatility, and unforeseen factors could influence price movements. However, the current technical setup presents a compelling case for Ethereum’s continued growth.
At the time of writing, Ethereum is trading at $4,565, a price point that underscores the market’s optimism. As traders and investors watch closely, the coming weeks could prove pivotal in determining whether Ethereum will indeed break into five-figure territory, marking a new chapter in its already impressive journey.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
