Summary Points (Bullet Points)
- Ethereum is supported above 200-day EMA at 2457 and it is currently trading at 2509.
- Bullish cup-and-handle construction having a neckline of $2,712 which indicates the possibility of a break out.
- There is a golden cross in the 50-day EMA and 100-day EMAs which compounded the existence of a bullish orientation.
- RSI divergence foreshadows declining trend with the short-term consolidation risk.
- The rate of funding at 0.0046%, shows that traders are bullish.
- Near term price targets: $3,255 (78.6% Fib) and $4,108 (100% Fib) which promise gains of up to 30+%.
Ethereum Analysis Price: Bullish Formation Indicates a Break Out
Investing Keyword: Ethereum Cup and Handle
Ethereum is moving towards a bullish reversal because it current consolidation at the 200-day EMA level of $2,457 has developed a clear cup-and-handle pattern in the daily chart. Trading at $2,509, the ETH has been trading on a tight range with increasing bullish momentum under the surface.
Cup-and-Handle Pattern: Key Is $2,712
Cup formation, which has been formed between February and May, has mined a rounding-bottom reversal pattern. The level of the Fibonacci retracement of 61.80% is $2,712, which is the resistance of the neckline.
In case Ethereum rallies beyond such a neckline, then the bullish cup-and-handle construction will be validated, and a move to a potential rally towards the $3,255 (78.6% Fib) and extended to the $4,108 (100% Fib) as the very optimistic possibility.
Golden Cross Makes Fire Intense
Ratifying this bull structure is the fact that there is a new golden cross development which is when 50-day EMA crosses higher above a 100-day EMA. It is a bullish indicator of seminal strength and may attract short-term players and institutional money flow players.
However Careful: RSI Divergence Indicates Decreasing Momentum
Technical caution should be exercised even though the chart structure is bullish. RSI (Relative Strength Index) is experiencing false bearish divergence because the price is experiencing growing lows, yet RSI is falling. This move may well be a pullback in the short-term with the important support values being:
- 2,386 (50 percent Fibonacci)
- 2 098 (38.2 Fibo.)
This will mean that in the bigger trend, it may be bullish but there could still be subsequent corrections.
Bullish Bias Continues With Rise In Open Interest and Funding Rate
In spite of the deviation, there is a bullish argument sustained in the derivatives market:
- The open interest increased by 2.52 percent to stand at 34.65 billion dollars.
- The funding rate is at 0.0046, which implies that traders are paying premiums to remain long on Ethereum.
This is more of a bullish mood in the market, despite the temporary quietness in the spot momentum.
Ethereum Price Forecast: Will Bulls Break the Mark of 2,712?
In order to activate the second up-thrust, Ethereum would need to soar convincingly beyond the level of 2712 dollars. Provided that this happens, it will confirm the cup-and-handle breakout and bring the market psychology wholly to the bullish side.
In the event of such a successful breakout, traders and investors can place their potential upside targets at:
- 3, 255 (78.6 percent Fibonacci level)
- The full recovery potential is at the level of 100%, with the price recovery (100 percent Fibonacci level) being at 4,108.
But without a good volume and wider market, there is still likelihood of sideways action or a short-term dip.