He suggested that in September, the second-largest cryptocurrency by market cap may form a “head and shoulders” pattern — a move likely to spook the market. However, Wu expects the pattern to be invalidated, followed by a breakout to new all-time highs.

Wu pointed to a similar setup in September 2021, when Ethereum fell 30% from $3,950 to $2,750 before setting a fresh record high in November.

Breakthrough at $5,000 Needed

Trader Daan Crypto Trades echoed this view, noting that ETH has recently been consolidating in the $4,300–4,500 range, creating uncertainty for investors. A retest of the lower boundary and the 200 EMA on the four-hour chart will be a critical point for a potential reversal, he said.

“Alternatively, consolidation above $5,000 would be a bullish signal and should drive Ethereum into the all-time high zone,” the expert added.

Technical analyst EtherNasyonaL emphasized that Ethereum is “on the verge of parabolic growth,” pointing to a similar pattern observed in 2017. Meanwhile, Michaël van de Poppe highlighted that the current levels offer “a perfect opportunity” to enter the market, predicting a sharp rally in Q4. At the time of writing, Ethereum is trading around $4,400, down 2.2% over the past 24 hours.