A rare chart breakout and rising treasury demand have traders betting big on Ethereum’s next major rally
Ethereum (ETH) is once again in the spotlight as analysts point to a bullish technical breakout and surging institutional inflows that could push the cryptocurrency towards the $10,000 (£7,404) milestone.
Trading around $4,478 (£3,318) at press time, ETH has consolidated within a tight range, demonstrating resilience despite wider market volatility. Investors now see a convergence of technical and fundamental drivers that may trigger Ethereum’s most significant rally since its 2020-21 bull run.
According to Brave New Coin, Ethereum has completed a three-year ‘cup-and-handle’ formation — a bullish chart pattern often associated with long-term upward momentum.
Crypto analyst Merlijn The Trader described the setup as ‘the Cup & Handle that makes millionaires,’ noting that the breakout is already in motion and could signal a measured move towards $10,000.
This technical configuration, backed by strong trading volume and sustained price stability, has historically led to bullish outcomes in over 60% of cases, according to chart pattern research by Thomas Bulkowski in Encyclopedia of Chart Patterns.
Ethereum’s current breakout follows years of consolidation since its 2021 all-time high, suggesting the potential for a multi-month rally if momentum holds.
Fueling the bullish narrative is a dramatic increase in Ethereum treasury holdings, which have now surpassed $18 billion (approx. £13 billion).
This accumulation reflects growing confidence among institutional investors and corporate treasuries, many of whom are diversifying beyond Bitcoin to gain exposure to Ethereum’s expanding ecosystem.
As reported by TechFinancials, Ethereum ETFs have attracted over $1.4 billion (approx. £1 billion) in inflows over the past month, narrowing the gap with Bitcoin products and positioning ETH as a mainstream investment vehicle.
Corporate treasuries are increasingly disclosing Ethereum holdings, citing its utility in decentralised finance (DeFi), NFTs, and layer-2 scaling solutions.
‘Ethereum’s versatility is becoming attractive for businesses seeking exposure to blockchain technology beyond Bitcoin’s store-of-value narrative,’ noted analyst Ashley Slimmerts. This convergence of ETF adoption and treasury demand is creating a powerful tailwind for Ethereum heading into Q4.
From a technical standpoint, Ethereum is consolidating near $4,680 (£3,467), with resistance seen around $4,850 (£3.593). A decisive close above the $5,000 (£3,704) threshold could pave the way for a longer-term move towards $7,500 (£5,556) and eventually $10,000 (£7,408), analysts say. On the downside, $4,500 (£3,334) remains a critical support level, having held firm during recent sell-offs.
Momentum indicators such as the Relative Strength Index (RSI) remain neutral, hovering near 55, which suggests ETH still has room to climb before entering overbought territory.
Whale wallet data also shows steady accumulation during dips, reinforcing the bullish case. According to The Coin Republic, major players like BitMine and SharpLink have collectively acquired over $83 million (approx. £61.5 million) worth of ETH in recent weeks.
Merlijn The Trader echoed this sentiment, stating: ‘Ethereum has spent the last three years building a massive cup and handle pattern. Now the breakout is in motion, and the implications are significant.’
While Bitcoin continues to dominate headlines with its institutional adoption, Ethereum is beginning to carve out independent strength. Analysts believe this divergence could accelerate if ETH breaks key resistance levels, setting the stage for a sustained rally.
Some forecasts even extend beyond the $10,000 (£7,404) target. Fibonacci extension models suggest Ethereum could reach $12,854 (£9,523) in the long term, representing a 180% upside from current levels.
However, traders are advised to watch for consolidation and pullbacks, as each resistance level could trigger temporary corrections.
As Ethereum’s fundamentals align with technical momentum and institutional support, the coming weeks may prove pivotal. If the breakout sustains and macro conditions remain favourable, ETH could be on the verge of its most significant rally since the 2020-2021 bull cycle.
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