Ethereum price chart hints at $4K breakout to new all-time highs

A key technical chart formation suggests that Ether’s ETHUSD price is about to break out toward new all-time highs. Can Ether flip the $4,000 psychological mark into support?

ETH price chart pattern hints at potential breakout

Ether price rose over 27% over the past week, flipping key resistance areas into support.

Following its price rally, Ether has broken out of its falling wedge chart formation, a pattern that indicates a potential reversal from the previous downward trend.

The breakout could signal a rally to new all-time highs, according to pseudonymous crypto trader Jelle, who wrote to his 83,000 followers in a May 27 X post:

The falling Bitcoin BTCUSD dominance also suggests that traders’ attention is rotating toward Ether as the ETH/BTC pair has bounced in the past few days. Bitcoin’s dominance fell over 0.98% during the past five days, while Ether's dominance rose 4.4%.

Over the past 24 hours, Ether dominance rose 1.45% while Bitcoin dominance fell 0.57%, according to TradingView.

ETH price needs to close week above $3,956 — analyst

Most of Ether’s current price rally can be attributed to positive developments around the first spot Ether exchange-traded funds (ETFs).

On May 20, Ether price rose nearly 20% within a day, following reports that the United States SEC has U-turned on spot Ether ETFs — possibly due to political pressure — with reports stating it has asked ETF exchanges to update their 19b-4 filings.

Adding to the positive investor sentiment, Ether price could rally to the $4,500 mark before the first spot Ether ETFs start trading, according to Arthur Cheong, the founder and CEO of crypto-focused investment firm DeFiance Capital.

In a May 26 X post, Cheong wrote to his 167,000 followers:

However, Ether’s price faces significant resistance at the $4,000 psychological mark. A potential move above $4,000 would liquidate over $433 million worth of cumulative leveraged short positions across all exchanges, according to CoinGlass data.

Ultimately, ETH price needs a weekly close above the $3,956 mark to confirm sustained bullish momentum, according to popular crypto analyst Rekt Capital, who wrote in a May 26 X post:

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.