Ethereum ($ETH) is demonstrating significant resilience, stabilizing above the $4,100 mark and defending broadening wedge support following a substantial 25-30% pullback in August. This movement aligns with analysts' bullish projections for the year. Current technical indicators suggest that the V-shaped recovery phase is complete, and Ethereum is now entering a consolidation period before a potential explosive expansion, echoing historical market patterns.
As of October 28, 2025, ETH is trading at $4,120 USD, showing a 0.5% increase intraday. The cryptocurrency has successfully defended its $3,950 support level, despite broader market volatility. Veteran analyst @IamCryptoWolf, who accurately predicted Ethereum's trajectory from its sub-$1,500 lows, has indicated that the broadening wedge pattern, where previous resistance has now become solid support, is holding firm. He anticipates that November will be a period of steady consolidation, with a breakout expected by the end of the month, potentially leading to accelerated gains of 20-30% in December, supported by a rebound in Decentralized Finance (DeFi).
Technical Analysis and Market Patterns
The current market action follows a healthy correction in August, which saw ETH experience a 25-30% pullback. This correction was deemed necessary after a significant rally and served as a breather following the V-shaped rebound from lows below $2,000. Ethereum is currently consolidating within the $3,900 to $4,300 range. Technical indicators, such as a neutral Relative Strength Index (RSI) at 55 and a MACD line teasing a bullish crossover, suggest a potential upward movement. The broadening wedge pattern is known for its volatility expansion, indicating an impending breakout. A breach of the neckline above $4,300 could trigger Fibonacci targets at $4,800 (161.8% extension) and $5,200 (200% extension), which aligns with institutional investor expectations of ETH reaching $5,000 by the end of the fourth quarter.
$ETH is holding the broadening wedge backtest, former resistance now acting as solid support.
— Wolf (@IamCryptoWolf) October 28, 2025
November looks like steady consolidation, with a breakout likely by month’s end and acceleration into December. So far, my start-of-year forecast has been spot on, let’s see if the… https://t.co/rdvk9FDOISpic.twitter.com/tZhoL8kyWS
Fundamental Catalysts and Broader Market Influence
Fundamental factors are supporting Ethereum's bullish outlook. The Ethereum ecosystem is experiencing growth, with Layer-2 total value locked (TVL) surging 18% following the Dencun upgrade. Staking yields at 4.2% are attracting holders, and significant whale accumulation, with over 150,000 ETH added to holdings in the past week, signals strong conviction. Broader market tailwinds also contribute, including Bitcoin's stabilization around $115,000, which typically supports altcoin performance, and the continuous inflow of over $2 billion monthly into Ethereum products driven by ETF approvals. Historical market patterns, such as those seen in Tesla post-split or gold in 2020, demonstrate that significant drawdowns often precede V-reversals and subsequent expansion phases.
Risks and Outlook
While the outlook is bullish, potential risks remain. A critical support level to watch is $3,723. A failure to hold this floor could lead to a retest of the $3,500 level, especially amidst any speculation regarding Federal Reserve policy. However, with the anticipated effects of November's halving event and increased liquidity during the holiday season, the market setup appears favorable for bulls. @IamCryptoWolf emphasizes the importance of the current support level holding, but his consistent track record, including accurate pattern calls in May, suggests a higher probability of upward movement. For Ethereum enthusiasts and traders, the current consolidation phase is seen as an opportunity to accumulate, with expectations of significant acceleration in December. The analyst's view is that Ethereum's current pattern indicates it is preparing for further upward momentum.