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Ethereum Breaks Key Resistance, Analyst Declares New Bull Market

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Ethereum's (ETH) monthly price closed above $2,470 on August 31, marking its first higher high since the downtrend began in August last year. This development has prompted analyst Matthew Hyland to declare a new bull market for Ethereum.

Hyland compared the current chart structure to the setups that preceded ETH's 2016 and 2020 rallies, noting that the token's monthly candle closed near its 50-month simple moving average with the RSI still deeply oversold. This setup last showed up in spring 2025, right before the token rallied 3.5x in five months.

Other analysts have been tracking ETH's price action, including DonAlt, who pointed out that there is 'no real resistance till $4k' and warned of a potential drop below $2,000 sending price toward $1,000. Meanwhile, Quantum Ascend noted that the monthly candle closed near its 50-month simple moving average with the RSI still deeply oversold.

The Ethereum price recovery is happening alongside increased network activity, with ETH approaching 1 million active addresses despite substantial activity taking place across Layer 2 networks. The next test of Hyland's thesis will be whether ETH can hold the $2,470 breakout area; a sustained move above it would leave the $4,000 region as the next major target cited by traders.

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