Ethereum (ETH) Breaks Out of Falling Wedge, Eyes 39% Climb Toward $3,570

Ethereum just broke out of a bullish wedge and jumped 5%, while Arthur Hayes says the real move is still ahead. Let's explore what the charts and macro trends suggest next.

Ethereum price broke out of a falling wedge pattern in the 4-hour chart on Bitstamp on Monday, May 21. The wedge resistance is now providing immediate support for the next move.

What Happened: As of press time, Ethereum was trading at $2,592.20, showing a rise of 5% from the wedge breakout point.

The 50-period Exponential Moving Average (EMA) at $2,481.40 is offering dynamic support for the price. The EMA crossed over the 100-period EMA earlier this month, indicating a bullish technical factor.

The Relative Strength Index (RSI) stands at 59.16, indicating that the RSI is above the neutral 50 level and could leave room for further upside as long as it stays below the overbought zone.

If this breakout confirms with sustained volume and momentum, Ethereum’s price could escalate by nearly 39% from the current level. This would set a target near $3,570.80, which is calculated by adding the wedge’s height to the breakout point.

The volume of 1.51K is moderate and suggests that more trading activity could pour in to support the bullish move.

The price action follows a prior sharp upward rally on May 9, which formed the wedge’s base, strengthening the case for continuation.

If Ethereum manages to hold above the wedge and the 50-period EMA, and if RSI continues to climb, the breakout scenario toward $3,570.80 remains valid.

See More: Best Cryptocurrency Scanners

Top Gainers, Losers In The 24 Hour Period

Why It’s Important: In a recent interview on the Bankless podcast, Arthur Hayes, former CEO of BitMEX and current Chief Investment Officer of Maelstrom, shared his thoughts on why he sees Ethereum (ETH) potentially hitting $10,000 or even $15,000.

Hayes tied this prediction to deep structural changes in the global financial system, which he believes will favor decentralized assets and push up prices. He also said Ethereum’s rapid rally reflects broader shifts in liquidity and investor behavior.

When asked about the factors driving Ethereum’s price surge of over 50% in a week, Hayes downplayed technical chart patterns and attributed the move to market sentiment. He noted that assets which are heavily criticized tend to rebound the fastest when a new market cycle begins.

“The most hated asset goes up the fastest in the next cycle. It’s just human nature,” Hayes said.

He explained that Ethereum had been largely ignored in favor of other tokens like Solana, leading to a decline in the ETH-to-BTC ratio and a decrease in Ethereum’s popularity. However, Hayes believed this set the stage for a strong comeback as people would get bored of the new favorites and return to the original assets.

“ETH was kind of dead. Everyone hated it. The BTC/ETH ratio was falling, Solana was running … it was time.”

While Hayes hasn’t added to his Ethereum position recently, he remains long on ETH and views the current price increase as just the beginning.

“It’s great it’s going up, but okay—let’s talk at $10,000 or $15,000. Let’s talk when it’s meaningful.”

framing Ethereum’s rally within a broader macroeconomic trend that he calls a “phase shift.” Hayes believes the world is moving away from U.S. Treasuries as the core of the global financial system. In the future, he expects capital to shift toward neutral store-of-value assets like gold and Bitcoin.

In this new financial landscape, Ethereum emerges as a higher-risk, higher-reward trade. As global central banks print more money and capital controls increase, Hayes thinks Ethereum will benefit from a rise in speculative risk flows.

“They print the money, and the consequence will be gold and Bitcoin going through the roof.”

Even though he considers Bitcoin and gold to be the primary reserve assets in a politically divided world, Hayes sees Ethereum as a powerful asset for those looking for asymmetric gains. He acknowledged that Ethereum has underperformed compared to Bitcoin, which he attributes to a lack of attention and a focus on newer projects.

Hayes said Ethereum’s next big move could be triggered by clearer regulations or a renewed focus on decentralized finance (DeFi). He pointed to projects like EtherFi and Pendle as examples of how Ethereum-based ecosystems could finally start generating reliable cash flows.

Hayes believes these developments could provide the fundamental support Ethereum needs to justify a much higher valuation.

“If you want to preserve access to capital and spend it how you want, the only things you can own are gold and Bitcoin. But if you want big upside, Ethereum is the play.”

Hayes also shared how he structures his own portfolio.