Crypto Analysts Spot Bullish Signal: Ethereum Targets $5K Milestone

Ethereum (ETH) is flashing technical patterns unseen since its last bull market peak, fueling bold $5,000 price predictions among top analysts.

Amidst a slight weekly pullback, signs of underlying strength have emerged, with increasing on-chain activity and significant institutional buying setting the stage for a potential major breakout if key resistance levels crumble.

Technical Crosscurrents and Surging Fundamentals

The bullishness has primarily come from emerging chart formations, with analyst Titan of Crypto highlighting a developing “bull pennant” pattern and noting that a successful breakout could propel ETH towards $5,000.

Echoing this, market technician Jonathan Carter observed a “Broadening Wedge Breakout” on the 3-day timeframe, setting even more ambitious targets at $5,500 and $6,850. Their optimism is supported by Ethereum’s relative display of strength against Bitcoin (BTC), holding above its Tenkan line, a key indicator of short-term momentum.

These technical signals have also come in tandem with significant growth on the network. On-chain data shows that Ethereum processed $238 billion in transaction volume in July, a 70% monthly increase, and the highest since December 2021. It also shattered records with 46.67 million transactions and 17.55 million active addresses.

Critical Thresholds Ahead

Despite the bullish signals, Ethereum still faces immediate technical hurdles and signs of exhaustion. As noted by Daan Crypto Trades, current price action shows ETH caught between crucial local support near $3,500 and resistance at $3,850.  Breaking the latter is seen as essential for the cryptocurrency to challenge its cycle highs.

This aligns with warnings shared in CryptoPotato’s latest ETH analysis, which noted potential exhaustion signals on lower timeframes despite the strong overall uptrend.

The asset’s price seems to reflect this tension. At the time of writing, it was trading at $3,721.28 according to CoinGecko, having increased by 45.8% over the past 30 days. However, it has faced some headwinds in the near term, going down 3.7% in the last seven days following rejection close to its one-week high of $3,862.

The confluence of bullish technical patterns, record-breaking on-chain usage, and growing institutional accumulation paints an intriguing picture for Ethereum’s potential. However, the path to $5,000 hinges decisively on conquering the $3,850 to $4,100 resistance gauntlet while avoiding a breakdown below $3,400. As such, the next few days could determine whether the bulls secure their breakout or face a more prolonged consolidation phase