Ethereum Eyes Breakout Toward $4,204 with Key Technical Formation in Play

Ethereum has dropped below $2,500, nearing $2,200, but analysts suggest a potential rebound could be on the horizon due to a Cup and Handle pattern indicating bullish movement. Current buying zones are being monitored at $2,140-$1,970, with a target of $4,204 if Ethereum can recover. The trading volume has also increased, showing an uptick in trader interest despite the recent decline.

Ethereum is currently under scrutiny as it recently slipped below the $2,500 mark, dipping close to $2,200. This downturn comes amidst the ongoing volatility seen in the crypto market. However, analysts believe that not all hope is lost and a recovery might be in the cards, thanks to some notable technical signals that suggest a rebound could occur in the near future.

One prominent signal is the Cup and Handle chart pattern identified by crypto analyst Rose Premium Signals. This formation suggests a bullish continuation following a phase of consolidation. Essentially, this pattern indicates a potential upward movement following a significant pullback. The expert pointed out in a recent post shared on X that ETH is generating momentum beneath this drop, which may set the stage for a robust comeback.

Looking at the 1-week chart, Ethereum’s current price is retreating from a critical neckline around $2,600. Despite this drop, there’s optimism as the Cup and Handle formation could catalyse a major rally for ETH. If Ethereum can recover from this level, it could aim toward a key target of $4,204.69 in the days ahead, marking a significant ascent from its recent lows.

Is now the right time to invest in ETH? As Ethereum bounces around between price levels, trader AlienOvicho believes it’s inching closer to a buying opportunity. Following recent analyses, a buy zone has been established between $2,140 and $1,970, which traders are currently monitoring. This zone is seen as crucial given the current bearish market conditions.

Should Ethereum fail to rebound next week, attention will likely shift to a more significant demand level around $1,800, which fits with earlier price structures and could provide support for future moves. Meanwhile, if the expected uptick happens soon, ETH could break through the $2,300 resistance, pushing its price higher.

As of now, ETH trades at $2,264, reflecting a near 1% decrease in value over the past 24 hours. While there’s some pressure on the price right now, market sentiment appears to be shifting positively. Recent data from CoinMarketCap indicates that ETH’s trading volume has seen an increase of over 13% in the last day, hinting at renewed interest from traders.