Technical analysis reveals Ethereum (ETH) is forming a bull pennant chart pattern, indicating the potential for a significant upward price breakout targeting the $5,000 mark.
This pattern emerged after a substantial price surge propelled ETH from $2,000 to approximately $3,600, forming what is known as the ‘pole’. Consolidation near current levels completed the pennant structure.
Supporting the bullish technical outlook is significant accumulation by major investors. Whales have aggressively increased their holdings since July, collectively purchasing over 856,000 ETH, valued at $3.16 billion at the time.
This accumulation pressure intensified recently, with three newly identified wallets acquiring 63,837 ETH, worth approximately $236 million, within a single 24-hour period.
Further bolstering the case for a breakout is a measurable surge in on-chain transaction activity. This increased network usage indicates heightened demand and supports the technical narrative of building momentum.
As of the latest data, Ethereum trades at $3,804.74, reflecting a 24-hour gain of nearly 5%, positioning it near the pennant formation’s critical threshold.