Ethereum (ETH) is showing early signs of entering a possible expansion phase as it nears a key technical level. With ETH recently testing the $4,250 resistance zone, analysts are monitoring market behavior for a breakout and confirmation above this price level.
On-chain metrics, technical patterns, and investor behavior are aligning to suggest a potential continuation in Ethereum’s price trend.
Power-of-3 Pattern Nearing Expansion Phase
Ethereum is trading just below $4,200 after gaining over 2% in the past 24 hours. Technical analysts have identified a Power-of-3 (PO3) pattern forming on the 12-hour chart. This structure involves three stages — accumulation, manipulation, and expansion.
According to analyst BitBull, Ethereum has completed the accumulation and manipulation phases. The accumulation range was between $3,570 and $4,050. This period showed sideways movement with low volatility. The manipulation stage followed, where price dipped below $3,670, triggering liquidity grabs before recovering quickly.
$ETH is perfectly forming a Power-of-3 pattern.
Accumulation has happened.
Manipulation has happened.A breakout and close above $4,250 level will trigger the expansion phase. pic.twitter.com/Ho4VrBIG29
— BitBull (@AkaBull_) October 27, 2025
The $4,250 resistance is seen as a major level for ETH. Analysts suggest that a clean breakout and daily close above this point could open the way for higher price targets. Fibonacci extension levels on the current chart place short- to mid-term targets at $5,270 and $5,940.
Lennaert Snyder noted that ETH recently tested the upper boundary of the compression range around $4,250 after reclaiming $4,030. He also pointed out possible support zones at $4,079 and $4,000.
Long-Term Channel Supports Bullish Structure
Ethereum’s price continues to track within a long-term ascending channel. This pattern has held since 2017, carrying ETH through multiple market cycles. It includes higher highs and higher lows, consistent with a rising trend.
CryptoELITES shared a chart showing the 2017 and 2021 all-time highs forming part of this ongoing structure. They added that Ethereum is “approaching the projected 2025 ATH,” which is based on the channel’s upper boundary. As long as ETH stays within this trend, analysts expect it to aim higher over time.
Reduced Exchange Reserves and Wallet Accumulation
On-chain data shows a drop in ETH held on exchanges, from 9 million to 6.7 million ETH over recent months. This signals reduced selling pressure, as tokens are being moved off exchanges. Such behavior often points to long-term holding or staking.
As CryptoPotato reported, large wallet activity has also changed direction. After offloading over 1.3 million ETH in 11 days, whale and shark wallets are now reaccumulating. Meanwhile, investor Tom Lee has remained bullish.
With the ETH price nearing the $4,250 breakout level, analysts and market participants are closely watching whether Ethereum will enter the expansion phase of the Power-of-3 pattern and continue its upward trend.
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