Ethereum’s Wyckoff Pattern Signals $5K-$7K Explosion
Ethereum progresses through Wyckoff Phases A–C, with recent LPS bounce confirming smart money accumulation after multi-year base formation.
$4K resistance breakout would trigger Sign of Strength (SOS), validating Phase D and opening $5K–$7K markup targets.
Post-Merge fundamentals—Layer-2 growth, DeFi TVL, and ETF momentum—support the technical case for Ethereum’s next major leg higher.
The ever-volatile world of cryptocurrency, Ethereum ($ETH) is showing signs of a classic accumulation pattern that could propel it to new heights. According to a recent technical analysis shared by market watcher @Bitcoinsensus on X, Ethereum’s monthly chart aligns closely with the Wyckoff Method’s accumulation schematic. This time-tested framework, developed by Richard Wyckoff in the early 20th century, identifies phases where smart money accumulates assets before a markup phase drives prices upward.
Last Point of Support Signals Demand Return
The chart illustrates Ethereum progressing through Wyckoff’s Phases A through C, with a potential transition into Phase D underway. Key markers include the Preliminary Support (PS), Selling Climax (SC), Automatic Rally (AR), and Secondary Test (ST), all visible in the price action from 2021 to the present. Currently, Ethereum appears to be in Phase B, characterized by accumulation amid volatility, but a strong bounce from the Last Point of Support (LPS) suggests demand is resurgence.
$ETH MONTHLY ACCUMULATION NEARLY COMPLETE
Wyckoff Phase C D transition unfolding
Strong bounce from LPS signals demand returning
Break above $4K = SOS confirmation → $5K–$7K target?#Ethereum #Wyckoff pic.twitter.com/AgWrq0UN14
— Bitcoinsensus (@Bitcoinsensus) January 8, 2026
ETH is trading around $3,300, having rebounded from recent lows. The analysis highlights a critical resistance at $4,000. A decisive break above this level would confirm a Sign of Strength (SOS), potentially igniting a rally toward $5,000 to $7,000. This projection isn’t mere speculation; it’s rooted in historical patterns where Wyckoff accumulations have preceded major bull runs in assets like Bitcoin and now, seemingly, Ethereum.
Layer-2 Growth and ETF Momentum Align
What fuels this optimism? Ethereum’s fundamentals remain robust. Post-Merge upgrades have enhanced scalability and energy efficiency, while layer-2 solutions like Optimism and Arbitrum continue to drive adoption. Institutional interest is surging, with spot ETH ETFs gaining traction and DeFi protocols locking billions in value. However, risks persist—macroeconomic pressures, regulatory hurdles, and market sentiment could derail the breakout.
Traders should watch volume spikes and on-chain metrics, such as active addresses and gas fees, for confirmation. If the pattern holds, Ethereum could lead the next altcoin season, rewarding patient holders. As always, crypto markets are unpredictable; conduct thorough research before investing.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
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