Ethereum (ETH) is demonstrating signs of strength following successful breakouts from significant chart patterns. The cryptocurrency has moved beyond several resistance zones, leading analysts to monitor for potential upward price movements.
Breakout Pattern Signals Trend Shift
According to analyst Marzell, ETH has successfully exited a falling wedge pattern and is currently trading above the breakout point. This pattern, when combined with alignment at Fibonacci levels, is often indicative of an ongoing trend change. ETH has also surpassed the 0.382 Fibonacci retracement level, a development that typically supports trend continuation if sustained.
Marzell has projected target levels for ETH at $4,950, $5,760, and $6,690, derived from Fibonacci extension levels. The analyst stated, "Momentum is turning bullish as key fib levels align," emphasizing that the current structure remains favorable unless critical support levels are breached.
A confirmation of ETH moving above the $3,400 level is still pending. Should this occur, analysts anticipate further upside potential. Conversely, a failure to hold this level could lead to a retreat towards the $3,200 support range.
CW has noted the formation of a new CME gap near the $3,330 mark, with another gap remaining open closer to $3,000. These areas may attract price action in the short term, contingent on broader market dynamics.
A new $ETH CME gap has formed. This gap exist since $3,325.
The previous gap near $3,000 still remains. pic.twitter.com/PTCgol3wEw
— CW (@CW8900) January 15, 2026
ETH/BTC Setup and Market Sentiment
Michaël van de Poppe has highlighted that ETH is exhibiting compression against Bitcoin, with the ETH/BTC pair trading above the 21-day moving average. He commented:
“ETH holding above the 21-Day MA against Bitcoin would signal that there’s more risk appetite flowing towards the altcoin markets.”
The ETH/BTC chart indicates sustained support at the 0.0325 BTC level, which has held firm on multiple occasions. Analysts closely monitoring the altcoin market consider this zone a crucial area for continued strength.
Additionally, a setup shared by Kamran Asghar illustrates ETH breaking out of a symmetrical triangle formation after an extended period of sideways movement. The current price action has successfully cleared the triangle's upper boundary, suggesting a potential move towards the $4,200 resistance zone.
On-chain activity for Ethereum is also showing an increase. DustyBC Crypto reported a new daily transaction record of 2.6 million. Concurrently, as reported previously, futures data indicates that open interest on Binance has risen to $8.6 billion, marking the highest level since October 2025. This surge follows a recovery from lower levels after recent liquidations.