Ethereum (ETH) has experienced its first significant upward movement in monthly closing prices since the downward trend commenced in August of the previous year.
On August 31, Ethereum’s most recent monthly candle closed above an important resistance threshold of approximately $2,470. Analyst Matthew Hyland remarked on X that this signifies the conclusion of the downtrend that began in August 2025.
Hyland emphasized that this closing marks the initial signal of a potential bull market, drawing parallels between the current chart patterns and those observed before Ethereum’s rallies in 2016 and 2020.
Turning Bullish: ETH’s Monthly Chart
Hyland’s analysis charts the movements from Ethereum’s peak in 2025, reached in August of that year, through a consistent pattern of lower highs and lower lows, with a bottom near $1,500 to $1,600 recorded in June and July of this year.
“ETH confirms a Monthly Higher High and ends its downtrend that started in August of 2025,” Hyland tweeted. “The Bears have been defeated. WELCOME TO THE #CRYPTO BULL MARKET!!”
Other investors are also echoing similar sentiments, including DonAlt, who stated that ETH has “No significant resistance until reaching $4k,” indicating support at around $2,100, while cautioning that a drop below $2,000 might push the price down to $1,000.
Daan Crypto Trades, another analyst, noted that ETH has spent the last 11 days constrained between its weekly 200-period moving average and a specific support level.
Quantum Ascend, another analyst, pointed out that ETH’s monthly candle closed near its 50-month simple moving average, with the RSI still significantly oversold—a scenario last seen in spring 2025 before Ethereum surged by 3.5x within five months. He expressed optimism for a new all-time high based on this trend.
Currently, Ethereum, the second-largest cryptocurrency, is trading above $2,400, having gained approximately 31% in the past month and 30% in just two weeks, yet still remaining nearly 50% below its record price of over $4,900 reached in August of last year.
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Surge in Network Activity Enhances Price Recovery
The recovery in ETH’s price aligns with a rise in network activity. According to CryptoPotato, Ethereum is nearing 1 million active addresses, reflecting notable transactions occurring across Layer 2 networks.
This context adds depth to the price movements, though active addresses alone can’t confirm whether ETH has indeed embarked on a new long-term cycle. For instance, Tron boasts more than 4 million active addresses, predominantly associated with payments and stablecoin transfers.
At this point, the clearest validation of Hyland’s assertion hinges on whether ETH can maintain its position above the $2,470 breakout level. A sustained rise beyond this point would make the $4,000 range the next significant target for traders, while falling below $2,000 could severely undermine the bullish outlook.
For further insights on Ethereum, you can view our market video below: