Ethereum’s monthly candle closed above a significant resistance level around $2,470 on August 31, prompting analyst Matthew Hyland to declare on X that the downtrend initiated in August 2025 has concluded.
Hyland characterized the close as the first confirmation of a new bull market, drawing parallels between the current chart formation and patterns that preceded Ethereum’s rallies in 2016 and 2020. His analysis traces ETH’s trajectory from its 2025 peak in August of that year, through a consistent pattern of lower highs and lower lows that bottomed out between $1,500 and $1,600 in June and July of this year.
“ETH confirms a Monthly Higher_High and ends its downtrend that started in August of 2025,” Hyland posted. “The Bears have been slayed. WELCOME TO THE #CRYPTO BULL MARKET!!”
Other market observers have also focused on this price zone. Trader DonAlt noted that ETH faces “No real resistance till $4k,” while identifying support around $2,100 and cautioning that a drop below $2,000 could lead to a decline toward $1,000.
Fellow analyst Daan Crypto Trades highlighted that ETH has spent the past 11 days trading within a narrow range, confined between its weekly 200-period moving average and a horizontal support level.
Analyst Quantum Ascend pointed out that ETH’s monthly candle closed near its 50-month simple moving average, with the Relative Strength Index (RSI) still deeply oversold. This configuration, he noted, last appeared in the spring of 2025, just before the token experienced a 3.5x surge over five months. Based on this historical pattern, Quantum Ascend anticipates a new all-time high.
At the time of this report, Ethereum, the second-largest cryptocurrency by market capitalization, was trading above $2,400. This represents an approximate 31% increase over the past month and a 30% rise in the last two weeks. However, it remains about 50% below its record high of over $4,900, which was set in August of the previous year.
Ethereum’s price recovery is occurring concurrently with an uptick in network activity. Reports indicate that Ethereum is nearing one million active addresses, even as significant activity continues on Layer 2 scaling solutions.
While this increased network engagement provides context for the price movement, active addresses alone are insufficient to definitively signal the start of a new long-term cycle for ETH. For instance, the Tron network boasts over 4 million active addresses, largely driven by payment and stablecoin transactions.
The most critical test of Hyland’s bullish thesis, for now, is whether Ethereum can maintain its position above the $2,470 breakout level. A sustained move beyond this point would position the $4,000 region as the next significant target for traders. Conversely, a failure to hold above $2,000 would substantially undermine the current bullish structure.
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