Ethereum Eyes $5,100 on $4,500 Breakout After Wedge Retest

Ethereum has broken out of a falling wedge pattern and is retesting breakout support near the $4,200–$4,391 range. A sustained daily close above $4,500 would likely trigger a rally towards $5,100, potentially setting a new all-time high. On-chain metrics support this bullish outlook, with DeFi total value locked (TVL) at $91.85 billion and stablecoin supply around $150.30 billion, providing ample liquidity. Traders are closely monitoring the $4,500 pivot. Past price action shows lower highs and lows formed a descending wedge from mid-July to early September, with buyers stepping in near $4,200 to prevent further declines. A confirmed breakout above $4,500 often sparks momentum runs. Failure to hold support near $4,200 could lead to deeper consolidation and increased volatility. Risk management around the $4,500 level involves segmented position sizing, stop-loss orders below the retest zone, and trailing stops on confirmed breakouts. Observers note that retesting previous resistance as new support reduces the risk of false breakouts and attracts institutional and retail entries. Key levels: support at $4,089 (former resistance), pivot at $4,500, and target at $5,100. Ethereum currently trades around $4,391 within the consolidation band. Traders should watch daily closes above $4,500 to confirm the next leg higher. On-chain activity and stablecoin backing suggest the market structure favors continuation.