Ethereum price breaks out from multi-year descending channel, eyes upside to $3,400

Ethereum price rose over 9% on Tuesday amid a broader market rally fueled by renewed hopes of a more stable U.S.-Iran ceasefire soon. 

According to data from crypto.news, Ethereum (ETH) price rose 9.2% to a 10-week high of $2,393 on Tuesday, extending its gains to over 17% from its lowest point in a monthly period. 

Ethereum price rebounded higher following Bitcoin’s footsteps and a rally across the entire crypto market as investor demand for risk assets increased after reports revealed that Iran could likely give up on its uranium enrichment plans to secure a deal with the U.S., putting more weight on a potential ceasefire that had previously been very shaky. 

The largest altcoin by market cap has also benefited from aggressive buying by the Ethereum treasury company Bitmine.

Over the past week, Bitmine acquired another 71,524 ETH, bringing its total holdings to 4.875 million ETH, representing 4.04% of the total supply. According to the company’s chairman, Tom Lee, Ethereum could likely be in the final stages of the mini crypto winter. This suggests why the company has ramped up its ETH buying activity for the past 4 weeks and helped in stabilizing the asset’s floor price. 

Moreover, over $123.5 million worth of short positions were liquidated from the altcoin futures market. This came as the sudden uptick in the altcoin’s price caught short sellers off guard, forcing them to buy back the asset to cover their losses. 

On the daily chart, Ethereum price has confirmed breaking out of a descending parallel channel pattern that had been forming since early August 2025. Typically, a decisive breakout from the upper trendline of the pattern leads to an upside equal to the height of the channel itself. 

Such a move would put the breakout target at $3,400, up nearly 42% from the current price level.  The MACD lines have pointed upwards and have moved above the zero line, a sign that bullish momentum is returning. Meanwhile, the supertrend indicator remained in green for nearly a month. 

For now, $2,500 remains the next major psychological resistance to watch. On the contrary, if its price dips back below $2,100, it could signal a return to the consolidation zone.