Ethereum (ETH) is set to end the year on a disappointing note, but some market participants are sharing optimism about the altcoin’s performance to begin the year, suggesting that a breakout in early 2026 remains a possibility.
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Ethereum maintains “equilibrium level”
Ethereum is looking to end the year outperforming key areas following recent sideways moves. Notably, virtual currency downward trend Over the past three months, it is currently down 27.8% from $4,145 at the start of Q4.
ETH has been trading sideways for the past few weeks, hovering in the $2,800 to $3,000 price range. During this period, the King of Altcoins failed to sustain above the weekly limit despite multiple breakout attempts.
Amid this performance, market watcher CryptoBatman recently noticed Ethereum is trading near the middle zone of a multi-year bullish channel, which he dubbed the “equilibrium level.”
This zone has historically He explained that it acts as both a strong support and resistance point for Ethereum, making it an important area to hold Ethereum as it approaches its monthly and annual closing prices.
Despite the recent price action, CryptoBatman suggested that “given how ETH rallied from $1,500 to $4,600, this current move is nothing more than a bullish retest of that equilibrium, likely forming the next low.”
Analyst Kas Abbe also said: affirmed Major altcoin structures remain “incredibly bullish” despite recent volatility, highlighting ETH’s uptrend line on higher time frames.
According to the post, the cryptocurrency has not only maintained an uptrend line for the past eight months, but has also rebounded on each retest, suggesting a rebound is possible if this level continues to hold on higher time frames.
Will ETH breakout occur in early 2026?
crypto jelly too share He gave a bullish outlook on Ethereum and confirmed that the altcoin looks strong on the macro chart. “Even though the price could rise towards $4,000 from here, we don’t see the bears being able to cap the price again,” the analyst wrote for X, adding, “next year may finally be ETH’s time to shine again.”
market observer trader tardigrade underlined A huge inverted head and shoulders pattern on the weekly chart of ETH. According to the post, the cryptocurrency has been in this bullish pattern for the past two years, with the neckline currently located around $4,950 to $5,000.
Specifically, the left shoulder and head developed during the rallies in the third to fourth quarters of 2024 and the second to third quarters of 2025. Meanwhile, the correction in Q4 2025 is starting to form the right shoulder of the pattern, which altcoin A rally to the neckline region is possible in the coming months, and if the pattern continues to develop, it could aim for even higher levels.
In a shorter period of time, Bitcoin Man noticed The analyst noted that there has been a one-month symmetrical triangle formation on ETH’s chart, with the price “pushed between both trend lines.”
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While the altcoin continues to compress between these levels, the likelihood of a breakout from the pattern increases, with market watchers suggesting a 15%-20% breakout towards the $3,400 resistance.
At the time of writing, ETH is trading at $2,977, up 1.2% on a weekly basis.
Featured image from Unsplash.com, chart from TradingView.com
