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Ethereum is drawing renewed interest from technical analysts, its chart setup can be compared with Bitcoin's breakout in 2021. The three factors which suggest Ethereum has the potential for rally again is a falling wedge breakout, multiple taps on RSI, and rising bullish momentum.
Technical Analysis suggests a potential upside to Ethereum as key indicators continue to link to previous bullish cycles. Similar to Bitcoin's 2021 incline, Ethereum's latest movements appear to be an indication that leads to the breakout, especially given the overall market sentiment.
A falling wedge is a classic bullish reversal pattern that suggests the end of the current downtrend and forming of a new uptrend. Ethereum recently broke free from this structure, indicating that the downward pressure has subsided and buyers are taking the reins.
Traders mostly rely on Ethereum Technical Analysis to identify entry points during volatile market conditions. The chart is a reflection of Bitcoin's setup in the beginning of 2021, a period when the cryptocurrency boomed to its new record highs. When it comes to Ethereum, the breakout might be in the initial stage of a comparable journey that BTC took.
The Ethereum Falling Wedge pattern signals a possible price reversal, attracting attention from technical traders. Ethereum’s RSI has tapped its long-term trendline three separate times, a behavior often associated with major reversal patterns. Bitcoin had also demonstrated the same RSI movements in 2021, before its explosive rally.
Ethereum RSI 2025 data indicates the asset is getting close to oversold territory, which may lead to a recovery. Several taps on the RSI indicating momentum and strong support at these levels, the price movement proves that Ethereum is no longer just getting a bounce, it could be going through a period of consolidation of a new market structure and, eventually, a breakout.
Also Read: 10 Years of Ethereum: Big Moments You Should Know
Despite positive signals, market sentiment remains cautious. Many traders are sitting on the sidelines, not wanting to call the bottom, or take a long position. Most traders' psychology is almost like it was during the last two bullish trends with Bitcoin in 2021, with many traders missing the second half of that price increase out of disbelief or indecision.
Overall, the crypto market sentiment remains cautiously optimistic despite many regulatory changes and ETF speculation. Historically speaking, the market's disbelief is part of the rally process to gain a foothold in the face of adversity. The reluctance or inability to believe in the validity of the current uptrend can be the perfect scenario for a stealth bull trend.
Analysts anticipate an Ethereum Bullish Breakout if the price closes above resistance with strong volume support. While nothing in crypto is ever guaranteed, the indicators for Ethereum are improving. The falling wedge breakout with supporting indicators from RSI and momentum shift means ETH is likely ready for an upward move.
The last time we saw this, Bitcoin caught the market off guard in 2021, and Ethereum may be on a similar trajectory. Traders and should keep an eye on volume confirmations and resistance breakouts.
