Ethereum's 6-Year Bullish Pennant Faces Final Test: Is the Breakout Finally Here?

Source: ETHNews Original Title: Ethereum’s 6-Year Bullish Pennant Faces Final Test: Is the Breakout Finally Here? Original Link: https://www.ethnews.com/ethereums-6-year-bullish-pennant-faces-final-test-is-the-breakout-finally-here/ Ethereum has spent the last six years in what Merlijn The Trader calls the longest consolidation in its history, a massive bullish pennant that most retail traders have forgotten even exists.

While the majority of the market turned its attention to faster-moving altcoins and Bitcoin’s volatility, ETH has been forming a slow, disciplined structure that smart money has quietly accumulated throughout.

According to Merlijn, the pattern has now completed its final shakeout, marking the moment where long-term compression meets breakout potential. In his view, once the next move begins, it won’t be subtle. He suggests the breakout could be powerful and aggressive as years of pressure finally unwind.

Breaking Down Merlijn’s Pennant Structure

The chart shared in the post highlights a textbook bullish pennant: lower highs tightening into a downward resistance line, paired with higher lows forming a long-term rising support. This structure has been stretching since 2019, making it unusually large compared to typical crypto consolidation patterns.

Merlijn’s chart shows that Ethereum recently dipped below the pennant’s lower boundary in what he labels a “massive fake-out.” This final shakeout is significant because it often represents the last point where weak hands are removed before a new upward trend begins. His projected path shows a steep rally, with the upper targets climbing toward the $7,000–$8,000 zone once momentum takes over.

Why This Consolidation Matters Now

A multi-year pennant is rare in crypto, and it typically signals that institutional capital has been absorbing supply for a long time. Merlijn emphasizes that retail lost interest, but smart money accumulated quietly, allowing ETH to build a slow, pressure-filled base. The longer the consolidation, the more explosive the breakout tends to be, and a six-year structure is longer than anything Ethereum has seen before.

The commentary implies that Ethereum may be entering a moment where long-term technical compression aligns with the broader cycle, giving it the conditions for an outsized move once price convincingly clears its trendline resistance.

The Road Ahead for ETH

If Merlijn’s analysis plays out, Ethereum is positioned for a move that could define the next major phase of the market cycle. His chart paints a scenario where the breakout accelerates rapidly once ETH escapes the pennant boundary, transforming a long period of stagnation into a vertical expansion phase.

For now, the structure is intact, the fake-out has already occurred, and the market is watching to see whether Ethereum finally triggers the breakout its long-term chart has been preparing for years.