Ethereum (ETH) is showing signs of a potential breakout, with technical analysis by crypto analyst Titan of Crypto suggesting a price target of $4,200.

In contrast to Bitcoin's impressive 54% appreciation since June 2024, Ethereum has experienced a decline of 24.6%, reflecting a possible shift in investor sentiment.

The analysis indicates that ETH is forming a broadening wedge pattern, which is characterized by diverging trendlines that signal increased market volatility.

Should ETH break above the $3,000 threshold, it could trigger a short squeeze, potentially accelerating its price rally due to significant short positions around this level.

Institutional interest in Ethereum is growing, highlighted by recent inflows into Ethereum exchange-traded funds (ETFs) totaling $240.3 million, surpassing the $164.6 million seen for Bitcoin ETFs.

Currently, ETH is trading at $2,756, which is 43.7% lower than its all-time high of $4,878, achieved in November 2021.

On-chain data suggests that Ethereum may not encounter significant resistance until it reaches the $3,417 level, indicating a potentially favorable outlook for price movement.

Recently, ETH displayed a 'golden cross' on the daily chart, a bullish technical signal that may foreshadow an upcoming price rally.