Ethereum's Bullish Breakout Confirmed: A Path to $5,100

Ethereum (ETH) is showing strong signs of a significant price rally, with a recent analysis confirming a major breakout from a key technical pattern. This bullish signal, supported by both spot holders and derivatives traders, suggests that ETH may be on its way to reaching the ambitious target of $5,100.

The Bullish Confirmation: A Falling Wedge Breakout

On September 10, Ethereum's price officially broke out from a falling wedge pattern. This technical formation is widely regarded by traders as a strong bullish signal, often preceding a substantial upward price movement. The breakout indicates a shift in market momentum from a period of consolidation and downward pressure to a new phase of upward price discovery. This is the primary technical foundation for the current bullish outlook.

Dual Support: Spot Holders and Derivatives Traders Align

The price breakout isn't just a technical fluke; it is being backed by concrete market behavior from two key groups of investors: Spot Holders: A key on-chain indicator, the Spent Coins Age Band (SCAB), shows a sharp decline. This metric tracks the movement of older coins and, in this case, a drop indicates that long-term holders are not selling their ETH into the rally. Their conviction to hold their assets provides a stable foundation and reduces selling pressure.Derivatives Traders: Simultaneously, derivatives traders are expressing strong bullish sentiment. The Taker Buy/Sell Ratio has peaked at 1.17, its highest level in over a year. A ratio above 1.0 indicates that more traders are buying than selling, reinforcing the upward momentum and providing a strong tailwind for the price. The combined force of these two groups—one showing a refusal to sell and the other showing a willingness to buy—provides a powerful and supportive environment for the breakout.

Key Price Targets and Support Levels

Based on the falling wedge pattern, the price target for this rally is $5,110. However, Ethereum must first overcome several key resistance levels on its path to this target: The first major resistance is at $4,630.A subsequent hurdle lies at $4,790.Finally, a prior peak of almost $4,950 will need to be surpassed. On the downside, immediate support for Ethereum is at $4,380. A drop below $4,279 would invalidate the bullish breakout pattern and shift the outlook to neutral. A further fall under $4,060 would be a bearish signal.

📌 Conclusion: A Resilient Rally Underway

The confluence of a confirmed technical breakout, strong holding conviction from long-term investors, and overwhelming bullish sentiment from derivatives traders paints a highly optimistic picture for Ethereum. While the path to $5,100 is not without its resistance levels, the fundamental and technical signals suggest that a powerful, well-supported rally is underway.

🔐 Disclaimer

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high level of risk and volatility. Always conduct your own research (DYOR) and consult a professional financial advisor before making any investment decisions.