Ethereum Retests Breakout Zone After Falling Wedge, Analysts Eye $4,500 for Next Move

Ethereum broke out of a falling wedge and is retesting support near $4,200–$4,391.

Analysts watch $4,500 as the decisive breakout level, with targets toward $5,100 and new highs.

Strong DeFi activity and $150B stablecoin supply reinforce Ethereum’s bullish market structure.

Ethereum has broken out from a falling wedge pattern and is now retesting the structure as new support. At the time of writing, ETH was trading at $4,391, consolidating below the $4,500 level. A decisive push above this level could position Ethereum for a move toward new all-time highs.

Ethereum Retests the Breakout Zone

Ethereum price action from mid-July through early September displayed strong upward momentum, followed by corrective movement. According to analysis prepared by CryptoJelleNL, ETH advanced strongly in late July into mid-August, reaching resistance near the $4,800–$5,000 zone

The market then retraced and formed a descending wedge pattern with repeated lower highs and lower lows. Support developed near the $4,200 level, where buyers consistently entered to prevent further declines. Ethereum eventually broke above wedge resistance, confirming a bullish breakout

According to market data, the breakout was recorded after ETH consolidated near the $4,200 zone before rallying higher. Price is now retesting wedge resistance as support, which analysts say is crucial for continuation.

Key Levels and Market Structure

Ethereum currently trades near $4,391, within a key consolidation band. According to an observation by Daan Crypto Trades, the level at $4,089 has shifted from resistance to support, creating a consolidation range below $4,864, the 2021 all-time high. Price now fluctuates between these levels as momentum builds.

Source: DaanCryptoTrades(X)

Traders continue to monitor the $4,500 level closely. A sustained breakout above this threshold could open the path toward $5,100 and potentially new all-time highs. According to data from DeFiLlama, Ethereum also maintains strong on-chain activity, with a total value locked of $91.85 billion

Stablecoin supply on the network has reached $150.30 billion, reinforcing Ethereum’s role in decentralized finance. The breakout from the falling wedge has shifted market structure positively. Once Ethereum breaks through the $4,500 mark, analysts see the asset going back to the previous highs and so setting up further gains in the up-coming sessions.

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