Ethereum could follow gold’s breakout pattern and reach a five-digit range above $20,000.
Ethereum faces the next resistance level at $4,750, but support levels remain at $4,250 and $4,060.
We are seeing strong buying momentum with $1.3 billion inflows from the new Spot ETH ETF.
Ethereum may be on the verge of something big. Renowned trader Merlijn The Trader, Trader Merlijn The Trader, says ETH is showing the same pattern that gold showed before its record rally.
Like gold, Ethereum could also go higher, potentially reaching the five-digit range above $20,000.
Ethereum reflects gold’s breakout pattern
According to Merlein’s analysis, gold (XAUUSD) spent years trying to break through strong resistance from 2021 to early 2024, but was rejected each time.
However, after finding solid support at the 2023 lows, gold finally broke through resistance in late 2024, sparking a strong rally to new all-time highs near $4,000 an ounce in 2025.
Now, Ethereum appears to be following a similar path. After establishing a foundation around mid-2025, ETH broke through the major resistance around $4,200, a level it had previously struggled with.
With this resistance turning into strong support, Marlin believes Ethereum could enter a breakout phase and possibly head into the five-digit range above $20,000.
Strong buying momentum for ETH
Ethereum soared above $4,500 this week to $4,582, with trading volume exceeding $31.55 billion and a market cap of nearly $553.87 billion. New inflows from new spot ETH ETFs (totaling $1.3 billion) have tightened supply and boosted investor confidence.
Whales have also intervened, opening large long positions and moving millions of ETH off exchanges and holding them.
Ethereum price outlook
After being sideways for a while, Ethereum is gaining momentum again and is moving above the $4,500 support.
According to crypto trader Ted, the next big challenge for Ethereum is the $4,750 level. If ETH is able to break above this point, it opens the door for a strong rally and perhaps even a new all-time high.
$ETH remains above the $4,500 support level.
The next major resistance level is $4,750, and the recovery will push Ethereum towards the new ATH.
On the downside, the two major support levels are $4,250 and $4,060. pic.twitter.com/0Fhfu7KuR4
— Ted (@TedPillows) October 6, 2025
On the downside, ETH has support at $4,250, and if it falls further, the next level to watch would be $4,060.
