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Given the heightened volatility observed in the general crypto market during the weekend, Ethereum once again lost the $2,500 price mark, which led to a notable pullback close to $2,200. However, ETH has not fully lost its potential to rally as technical developments hint at a major rebound in the upcoming days.
Key Pattern Signals A Sharp Rally For Ethereum
Ethereum is battling with growing bearish pressure after losing the $2,500 mark a few days ago. ETH’s price may have witnessed a sharp pullback, but Rose Premium Signals, a crypto analyst, is confident that a rebound could be underway.
In the post shared on X, the expert’s analysis on ETH shows that the altcoin is building strength beneath the fall as a key chart pattern begins to take shape. Specifically, Rose Premium Signals has identified a Cup and Handle chart pattern on the 1-week time frame.
A Cup and Handle formation is a bullish technical continuation pattern that suggests a possible bounce toward the upside following a phase of consolidation. Since the pattern often points to a bullish outlook, the expert believes that ETH could bounce back again and surge dramatically to high levels.
An emerging cup and handle pattern | Source: Rose Premium Signals on X
Looking at the 1-week chart, Ethereum’s price is presently retreating from the neckline region at about $2,600. Despite the notable decline, the key chart pattern is expected to trigger a major rally for ETH.
As the cup and handle pattern slowly matures, ETH could be on the verge of a significant upward move that may challenge previous highs. According to Rose Premium Signals, if this zone is successfully recovered, the altcoin may move closer to the key target of $4,204.69.
Is It A Good Time To Purchase ETH?
While Ethereum has retraced, AlienOvicho, a crypto expert and trader, revealed that the altcoin is inching closer to a price range considered a good buying point. After navigating the ongoing price action, the analyst has underlined the buy zone between the $2140 and $1970 range.
As bearish pressure mounts, the $2,140 – $1,970 buying zone is a crucial area where a positive reaction is expected, and is currently being tested by ETH. However, if the bounce does not happen next week, attention will be shifted to the next possible demand zone, which is around $1,800.
This level is consistent with the earlier structure and may provide a more solid foundation for the subsequent move higher if the larger structure holds. Meanwhile, a rebound, which is expected to take place in the upcoming days, would push ETH’s price past the $2,300 resistance level.
At the time of writing, ETH was trading at $2,264, demonstrating a nearly 1% decrease in the last 24 hours. ETH’s price may be facing bearish pressure, but sentiment among traders appears to be improving. Data from CoinMarketCap reveals that its trading volume has increased by over 13% in the past day.
ETH trading at $2,254 on the 1D chart | Source: ETHUSDT on Tradingview.com
Featured image from Pixabay, chart from Tradingview.com
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