Ethereum News: Ethereum Eyes $10K as Bullish Megaphone Pattern Forms, Analysts Say

Key TakeawaysA megaphone pattern on ETH’s weekly chart suggests a potential rally toward $10,000.Clearing $5,000 resistance could liquidate up to $5 billion in short positions.Analysts warn of short-term volatility, but maintain ETH is “bullish for years.”Ethereum (ETH) is showing signs of entering a multi-year bullish cycle, with analysts pointing to a technical megaphone pattern that could eventually push prices toward $10,000.At press time, ETH trades at $4,511, with immediate resistance near $5,000. A breakout above that level could trigger as much as $5 billion in short liquidations, potentially accelerating upward momentum, according to CoinGlass data.Megaphone Pattern Signals ExpansionCrypto analyst Jelle highlighted ETH’s weekly megaphone formation, also known as a broadening pattern, which indicates widening volatility and the potential for explosive rallies once resistance is broken. However, analysts stress that volume confirmation is crucial to avoid a false breakout.If ETH fails to clear $5,000, price could retreat toward the 12-week SMA near $3,500 or even the $3,000 support zone.Whales Target $5,100 Liquidity ZoneTrader Merlijn noted that ETH faces a dense sell wall around $5,100, describing it as “the kind of level whales dream about.” He expects whales to target that zone, liquidating over-leveraged shorts and extending the rally.Long-Term Structure Remains BullishDespite short-term risks, analyst Jackis argues that ETH is “insanely bullish for years to come,” pointing to its breakout from a 4.5-year accumulation range. He believes the prior four-year cycle ended in December 2024, paving the way for a new structural expansion phase.Still, he warns that ETH could see mid-term shakeouts, similar to Bitcoin’s $25,000 correction in 2023, before the uptrend resumes, according to Cointeelegraph.ETH-BTC Correlation Remains StrongMarket analysis firm Ecoinometrics emphasized that ETH, despite its resilience, remains strongly correlated with Bitcoin, averaging a correlation score of 0.8 over the past five years.A sustained move above Ethereum’s 2021 all-time high of $4,880 would confirm immediate continuation of the bullish trend, analysts said.