Ethereum Price Jumps 20% After Breakout: How High Can ETH Go Next?

Highlights:

• Ethereum breaks out after a prolonged wedge formation since early 2024
• Ether price has surged by 20% in the past week after a bullish trend
• Analysts project $3,840 based on the measured wedge breakout pattern

Ethereum (ETH) price has recorded a sharp surge, climbing past the $2,300 level for the first time since January. The move follows a sustained rally over the past 24 hours, positioning ETH among the day’s top market gainers. The price increase comes with a significant rise in trading activity, with 24-hour volume reaching $52.46 billion, up 132.%.

The recent price action reflects a broader breakout from a six-month downtrend. Technical patterns suggest a double bottom formed near the support zone, often seen as a reversal signal. The move upward signals the potential for further gains, with analysts observing a target around the $3,000 mark.

Pectra Upgrade and Market Optimism Fuel ETH Rally

The successful implementation of Ethereum’s Pectra upgrade on May 7 has boosted investor confidence. The update considered the most impactful since the 2022 Merge, improves staking efficiency and network capability.

Macroeconomic factors have also played a role in the rally. A new trade agreement between the United States and the United Kingdom has contributed to improved sentiment in global markets, supporting digital assets like Ethereum.

Ethereum continues to hold its position as the second-largest cryptocurrency by market capitalization. Ether currently has over 120 million tokens in circulation. Meanwhile, Bitcoin also rallied strongly, printing a large green candle and briefly surpassing the $100,000 mark after a prolonged consolidation phase.

Ethereum Price Signals Upward Momentum to $3,600

Crypto price momentum has confirmed that Ethereum (ETH) is breaking out in a bullish trend from a five-month period of consolidation within a descending broadening wedge. Market watchers say that the breakout, now confirmed on the daily chart, implies a possible change in sentiment to the upside.

The wedge structure had been forcing ETH’s price lower since early 2024, with resistance capping each recovery attempt. Analysts now point to a breakout level above the upper wedge line, confirming the bullish push.

Technical forecasts indicate that Ethereum may target the $3,840 level in the short term. This target is consistent with the measured move calculation of the wedge. On chain indicators and volume also seems to confirm the breakout as accumulation has been increasing steadily over the last few weeks. The ETH/USDT pair is now coming out of the old bearish channel after which it has significantly arrogated traders’ attention. With breakout above key resistance, Ethereum’s upside setup from its chart is strongest in several months.

$ETH Descending Broadening wedge Upside Breakout is finally Confirmed after 5 Months of Consolidation..

Now Send it to 3840$

#Ethereum #ETH #ETHUSDT pic.twitter.com/Wxstm7QJiq

— Captain Faibik (@CryptoFaibik) May 9, 2025

Ethereum Price Climbs 20% in 24 Hours

The latest Ethereum price action has captured market attention following a 20% surge, closing at $2,369. This move came after ETH cleared key resistance at $2,000, opening the way toward higher levels. The RSI has pushed above 80, currently reading 81.95, which places Ethereum in overbought territory. While this suggests bullish strength, it also signals potential short-term exhaustion. 

The MACD histogram has extended further above zero, while the signal line confirms a strong upward trend. Momentum appears in favor of buyers as the MACD fast line remains well above the slow line.

If the current momentum continues, Ethereum may retest the $3,000 level, which now acts as the next immediate resistance. A confirmed break above that could open the way for a broader move toward $4,000. This zone represents a full 70% gain from the current price. Support now lies at $2,000 and $1,800, both of which were held during earlier accumulation phases.