Ethereum is up just over 1% in the past 24 hours. Although it still lags the broader crypto market, its monthly losses have narrowed to around 5.7%, with Bitcoin down more than 10% for the month. Ethereum price is showing early signs of strength once again, albeit at a slower pace.
A familiar bullish pattern is taking shape, whales are increasing their holdings, and the chart is now nearing the level that will determine whether this breakout is real or not.
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Whales intervene and a familiar pattern is taking shape
Ethereum has formed a cup-and-handle pattern, and this structure is often seen before a trend reversal. The “cup” is the round bottom from the mid-November low, and the “handle” is the recent pullback. The edges of the pattern are slightly sloped downwards, but this does not detract from its effectiveness.
As long as the price continues to respect the cup construction and go back to testing the rims, the sloping neckline will still work.
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Whales increased their positions shortly after Ethereum started moving off the handle. From December 11th to December 12th, Whale’s supply surged from 1041 million Ethereum to 100.5 million Ethereum.
This is a small but timely addition of 90,000 ETH, worth approximately $293 million at current prices.
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Whale buying during a pattern breakout attempt often indicates that large holders are expecting a continuation. Moves are not confirmed, but setup is supported.
A clean breakout requires a daily close above the pattern neckline of $3,486. Ethereum is still about 7% below that line.
Ethereum Price Levels Confirm Breakout
Once Ethereum clears $3,486, the cup and handle structure will be confirmed and the measured target will become active.
Based on the depth of the cup, Ethereum’s target price is around $4,779, representing a 37% upside from the assumed neckline. Before reaching that, Ethereum will encounter interim resistance levels at $3,712 and $4,249.
These regions have historically had slower prices and therefore serve as checkpoints on the way to the full goal.
The disadvantages are:
Weakness first appears when the daily close is below $3,152 as the handle structure breaks down. This setup will be invalidated if Ethereum falls below the bottom of the cup support at $2,620.
Bias is cautiously bullish at the moment. The pattern remains the same, with the addition of a whale and Ethereum close to the breakout line. It still needs a 7% move to confirm, but the setup is stronger than it has been in recent weeks.
