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Ethereum (ETH) is showing early signs of a bullish trend reversal after breaking out of a multi-month falling wedge pattern near $1,800. A Golden Cross and rising MACD support short-term momentum, while whale accumulation and positive funding rates reflect growing confidence. With key resistance at $2,143 and long-term targets stretching to $3,200-$4,000, Ethereum may be preparing for a major upside move if it can hold and build on recent gains.
Ethereum (ETH) is showing signs of recovery and bullish signals on the charts as well as in the market sentiment. As ETH trades at $1,820, analysts are watching whether it will reclaim a vital level to signal that the market will have a sustained upward rally.
Ethereum has broken out of the falling wedge that began in early January 2025. Price action breaking above the upper boundary usually signals the potential beginning of a reversal from bearish momentum to bullish.
The ETH chart shows that the price broke out of the falling wedge between the $1,790 -1,800 mark. This breakout is supported by strong momentum, increased volume, and the convergence of moving averages toward the $1,820 level.
The 100-day EMA is acting as dynamic resistance for Ethereum, which is being tested around $1,860. Moreover, the MACD histogram currently moves above the zero line, where the signal lines crossover upwards, leading to a short-term bullish indication.
Immediate resistance is found at $1,857 and $2,143. A confirmed close above $2,143 could push ETH toward the $2,500-$2,700 zone.
Strong support remains at $1,680, with deeper support around $1,542 and $1,328 if the trend fails.
ETH has recently flashed a golden cross, with the 50-day moving average crossing above the 200-day moving average. This crossover is a historically bullish signal that often precedes larger price moves to the upside.
A Bull Flag is forming on the weekly chart, indicating that ETH might be coiling for a breakout. Analyst Kamran Asghar commented that if the momentum and volume continue to increase, Ethereum may take as high as $16,414 by early 2026.
Recent data from Blockchain.news shows that whales bought over 5,000 ETH worth more than $9 million in less than two hours on May 1, 2025. Large-sized wallets borrowed millions in USDC to buy ETH, and a newly created address withdrew 2,250 ETH from exchanges for what is considered by some to be evidence of a long-term holding intention.
On-chain data confirms that wallets with 1,000 and 10,000 ETH are on the rise, reaching a 20-month high of 5,460 wallets. This consolidation trend among large holders represents accumulation behavior observed at the beginning of bull cycles.
The ETH perpetual contracts show favorable funding rates, with an approximate rate of 0.05% per hour on major exchanges like Binance and OKX. Long-position traders are paying short-position traders due to the prevailing bullishness, which most likely often happens during these periods.
Binance has changed the funding rate settlement from 8 hours to 1 hour, signaling a rise in activity and perhaps volatility expectations in the derivatives market.
A recent bullish breakout from a falling wedge pattern, coupled with a Golden Cross and bullish funding rates, set up a bright technical image. Whale activity, heavy support latitudes, and healthy long position growth suggest that ETH may be gearing up for a longer-term rally towards $2,500-$3,200.
Ethereum must reclaim the $2,143 resistance to declare any breakout successful and escape yet another phase of rejection. Investors should focus on confirming the breaking momentum through volume, whale transactions, and derivative trend observation.
