- Ethereum is consolidating around $2400 after a sharp pullback from $2800 highs.
- Key support lies between $2100 and $2400, aligning with major Fibonacci retracement levels.
- A cup and handle pattern is forming on the weekly chart, hinting at a possible breakout to $4200.
- Rising volume and sustained support are essential for confirming the bullish continuation.
Ethereum (ETH) is currently floating near $2400, showing signs of consolidation after a recent pullback from a recent high of near $2800. Price action for the past two months has been labeled as a strong rally from a low of near $1400, followed by a pullback, now testing key levels of support.
This period of consolidation is quite necessary for Ethereum, as the future direction is determined. After bottoming out levels during the initial part of 2025, Ethereum experienced a rapid comeback and pushed the price close to $2800.
Nevertheless, profit taking and sentiment-based fears led to the price falling to near $2400, where now, the price is finding support. Now, the pullback appears to align with key Fibonacci levels of $2100 to $2400, which are frequently employed to find areas of buying interest during corrections.
Also Read: Ethereum (ETH) Price Targets $8K As Wyckoff Structure Aligns With Major Upgrade
Ethereum Prepares for 75% Rally
As observed from the weekly chart, one realizes here that ETH traces out a cup and handle formation, one of the all-time bullish continuation patterns. As the formation evolves, a breakout above the $2800 resistance would trigger an enormous rally towards $4200. This level is a significant gain of almost 75% from spot prices, which holds enormous growth potential for investors in Ethereum.
In order to confirm this bull case, Ethereum must continue to see support within the $2100 to $2400 zone and exhibit increasing trade volume on the breakout bid. Failing to hold these levels could induce prolonged consolidation or additional selling, which would delay the next leg up.
The behavior of the price of ETH shows a significant consolidation phase with strong support around $2400. Formation of a bull pattern and coincidence with key technical levels suggest a possible breakout towards $4200.
Traders and investors need to closely monitor price and volume action during the next couple of weeks to gauge buying opportunities and verify the breakout potential.
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