As Ethereum (ETH) is set to end the year on a disappointing note, some market observers have shared an optimistic outlook for the altcoinโs start-of-year performance, suggesting that an early 2026 breakout remains possible.
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Ethereum Holds โEquilibrium Levelโ
Ethereum is attempting to end the year above a crucial area following its recent sideways action. Notably, the cryptocurrency has been in a downtrend for the past three months, currently recording a 27.8% decline from its Q4 opening of $4,145.
ETH has been trading sideways over the past several weeks, hovering within the $2,800-$3,000 price range. During this period, the King of Altcoins has failed to hold above the upper boundary on the weekly timeframe despite multiple attempts to break out.
Amid this performance, market watcher Crypto Batman recently noted Ethereum is trading around the mid-zone of a multi-year bullish channel, which he named โthe equilibrium level.โ
This zone has historically acted as both a strong support and resistance point for Ethereum, he explained, making it the crucial area to hold as we approach the monthly and yearly closes.
Despite the recent price action, Crypto Batman suggested that โgiven how ETH rallied from $1,500 to $4,600, this current move looks like nothing more than a bullish retest to that equilibrium, likely forming the next higher low.โ
Similarly, analyst Cas Abbรฉ affirmed that the leading altcoinโs structure remains โincredibly bullishโ even with the recent volatility, highlighting ETHโs uptrend line on the higher timeframes.
According to the post, the cryptocurrency has not only held its ascending trendline over the past eight months but also bounced after each retest, suggesting that a rebound could be possible if this level continues to hold on the higher timeframes.
ETH Breakout In Early 2026?
Crypto Jelle also shared a bullish outlook for Ethereum, affirming that the altcoin looks strong on the macro chart. โIf price can push towards $4k from here, I doubt bears can hold it down again,โ the analyst wrote on X, adding that โIt might finally be time for ETH to shine again next year.โ
Market observer Trader Tardigrade underscored a giant Inverse Head and Shoulders pattern on ETHโs weekly chart. Per the post, the cryptocurrency has been forming this bullish pattern for the past two years, with the neckline currently located around the $4,950-$5,000 mark.
Notably, the left shoulder and head developed during the Q3-Q4 2024 and Q2-Q3 2025 rallies. Meanwhile, the Q4 2025 correction has started to form the patternโs right shoulder, which signals that the altcoin could rise to the neckline area in the next few months, and potentially aim for higher levels if the pattern continues to develop.
In the shorter timeframe, Man of Bitcoin noted that Ethereum could see a breakout in the first week of 2026. The analyst pointed out a one-month symmetrical triangle formation on ETHโs chart, where the price has been โgetting squeezed between both trendlines.โ
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While the altcoin continues to compress between these levels, a break from the pattern becomes more likely, leading the market watcher to suggest a 15%-20% breakout toward the $3,400 resistance.
As of this writing, ETH is trading at $2,977, a 1.2% increase in the weekly timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
