Key insights:
- Ethereum is forming a bullish megaphone pattern, and could be preparing for a surge toward $8,000 by next year.
- Analysts believe ETH is entering its final Elliott Wave phase, which is typically marked by explosive price movement.
- A breakout above $4,000 could trigger a rally to $7,150 or even $10,000.
Ethereum’s recent price movements are starting to resemble the Dow Jones Industrial Average (DJIA) from the 1980s.
According to market analyst Gert van Lagen, the current ETH price structure is forming a “textbook expanding diagonal.” For context, this is a pattern which is often seen in massive bullish trends.
This technical setup, which resembles a broadening megaphone, indicates that Ethereum could be looking towards a “final surge” that sends it toward the $8,000 mark.
The Final Surge
Van Lagen’s analysis doesn’t just rely on shapes and lines. It is backed by Elliott Wave theory, which breaks a market cycle into five waves.
According to the analyst, Ethereum is now in the fifth and final wave, which is known as the “blow-off top.” This stage tends to be the most volatile, and often comes with strong price growth, heavy retail interest, and strong bullish sentiment.
#Ethereum is poised to complete its 2019–2025 Bull Market with a textbook Expanding Diagonal as Wave v.
Each subwave within this structure is corrective. The current and final wave up is expected to break out of the Wave 3–4 megaphone pattern, completing Wave a, followed by a… pic.twitter.com/wvwAQbwXAy
— Gert van Lagen (@GertvanLagen) July 19, 2025
Historically, this last wave draws in a large number of new buyers who fear missing out. For Ethereum, this could mean a quick climb that brings it closer to the upper boundary of the megaphone pattern, right around $8,000.
Ethereum Ascending Triangle Offers Short-Term Targets
Beyond the long-term outlook, Ethereum’s short-term chart also shows some bullish promise. ETH has reclaimed a long-standing ascending trendline and is currently consolidating within an ascending triangle as illustrated.
This triangle has a resistance zone between $3,900 and $4,150, and a breakout above this level could send ETH as high as $7,150. From current price levels, this would represent an 80% increase from its current position.
Macroeconomic Factors Could Fuel the Fire
The technical setup is just one side of the story. Macroeconomic factors also seem to be in Ethereum’s favor.
The Federal Reserve is expected to cut interest rates in the coming months, which historically tends to boost prices across the board, including cryptocurrencies. In addition, the increasing flow of funds into Ether-based ETFs is injecting more capital into Ethereum markets.
In addition to this, a recent update from Consensys shows that Ethereum could reach a base price of $4,900 by the end of the year. Looking further ahead, the model indicates that ETH could hit $15,800 by 2028.
Parallel Channel Adds Another Ethereum Bullish Angle
Another analyst, Ali Martinez, recently offered a different technical lens. He pointed out that ETH has been trading inside a parallel channel for the past couple of years.
The upper bound of this channel, around $4,000, has been a consistent resistance level. Ethereum has tested it three times and failed each time. However, Martinez believes a successful breakout this time could unlock a path toward $10,000.
If Ethereum $ETH can break past $4,000, we could be looking at $10,000 next! pic.twitter.com/sTS5tFjBWK
— Ali (@ali_charts) July 21, 2025
Considering the size of ETH’s current pattern, the math shows that a breakout could lead to a final price target of around $10K.
Data from Glassnode also shows that since early July, Ethereum has seen a 16% increase in the amount of ETH held by “First Buyers”. This surge in new participation is a bullish signal and indicates that interest in Ethereum is strongly on the rise.