Ethereum’s price fluctuations are showing strong bullish momentum, approaching the psychological threshold of $5,000:
→ since the beginning of August, ETH/USD has risen by approximately 25%;
→ since the start of summer – by more than 80%.

Bullish Drivers in 2025

This year, market optimism is being shaped by:
→ the large-scale upgrade known as Pectra;
→ improvements in the US regulatory environment (such as the approval of a stablecoin bill and permission for pension funds to invest in cryptocurrencies);
→ weakening of the US dollar (Fed Chair Powell’s Friday speech triggered a fresh bearish impulse for the DXY dollar index).

Technical Analysis of ETH/USD

Last month, we noted that:
→ ETH/USD price movements had formed an ascending channel (highlighted in blue);
→ we suggested that Ethereum’s steep price rally might slow down as the price approached the channel’s upper boundary (which acted as resistance).

Indeed, since then, the price developed a bullish flag pattern (marked R-S). However, the uptrend soon resumed with renewed strength, with:
→ a steeper upward trajectory emerging (shown with purple lines);
→ the upper boundary of the blue channel switching roles to act as support.

Could ETH/USD Break Through the 5000 Level?

Given the inertia typical of financial market trends, it is difficult to imagine the current strong bullish momentum reversing into bearish action in the near term. The price continues to follow a steeper upward trajectory, while the $4,400–$4,600 zone (highlighted in green) may act as support, as the market advanced through this level with relative ease – a sign of imbalance in favour of buyers.

However, the ETH/USD chart is showing signs of growing bearish pressure:
→ a cascade of divergences on the RSI indicator;
→ long upper wicks (indicated by an arrow) on recent candlesticks;
→ a potential bearish double top formation (A-B).

It appears that the $5,000 mark is acting as psychological resistance, preventing the price from reaching the upper boundary of the purple channel. Therefore, even if an attempt to break above $5k occurs, it could trigger stronger selling pressure.

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