Ethereum Price Forecast: Confirmed Bullish Pattern Sets Stage for 25% Gain

Ethereum (ETH) has gone up by more than 8% in the past 7 days, as the top altcoin has rallied past the $1,800 resistance and has finally confirmed a bullish setup that could push it to $2,400 in the near term.

Trading volumes in the past 24 hours have risen by 74% to nearly $12 billion. This figure accounts for 5% of the asset’s circulating market cap and indicates strong participation.

Over $160 million worth of short positions have been blown up during this period, which further raises the odds of a short squeeze.

Ethereum’s Breakout Above $1,800 Could Mark the Beginning of a True Recovery

We have been tracking Ethereum’s price action after the token broke that key resistance at $1,800, as a bullish W-shaped pattern had been forming for weeks.

Last week, Ethereum-linked exchange-traded funds (ETFs) brought in $105 million from investors. Meanwhile, total assets under management (AUM) held in these vehicles increased by 4% in just a week.

Market sentiment has also been recovering recently as the odds of a rate increase in September by the Federal Reserve dropped following a lower than expected inflation print in June in the United States.

The latest price action seems to be a reflection of a market that is testing the waters to see if there is enough interest out there to push prices higher via FOMO and key resistance breakouts.

In April last year, Ethereum spearheaded the recovery of the crypto market following the release of the Pectra upgrade — a key technical overhaul for the Ethereum Virtual Machine (EVM) that promised to lower fees and ramp up scalability.

We have been repeatedly stating that this appears to be the late stage of this bear market. If that’s the case, Ethereum’s latest rally could be a canary in the coal mine for the whole crypto world.

Why is that? This is the most popular and robust blockchain in terms of real-world use cases and decentralization. That gives ETH a credibility premium over smaller projects like Solana (SOL) or BNB (BNB).

Weekly Buy Signal is Confirmed After Strong Bounce Off $1,500

We have been tracking a weekly buy signal that yielded impressive results in the past.

The last time that signal worked was in April 2025, back when it accurately timed the market’s bottom at around $1,400. We called that bottom back then, and the price started to rally shortly afterward to the target we set at the time at $3,000 — and then blew past it.

This time, we broke the signal’s previous low, which partially invalidated its bullish bias. However, since there’s a strong multi-year support nearby at $1,500, we still think ETH could bounce strongly off this mark.

Interestingly, the signal triggered once again as the Relative Strength Index (RSI) dropped to 30 for a second time in just a couple of months.

This increases the odds that ETH will start to recover, and a confirmed W-shaped pattern is exactly the signal that one would expect in a lower time frame (daily) to confirm that. If that’s the case, our nearest target would be $2,200, which is where the 200-day exponential moving average (EMA) currently sits.