Ethereum is trading near $3,600 and could see a strong upward move if resistance is broken.
A bullish Cup and Handle pattern signals Ethereum may rally toward the $6,675 level in the coming weeks.
Traders are optimistic as market momentum and key chart patterns support Ethereum’s price recovery potential.
ETH is showing signs of a major rally as a Cup and Handle sequence appears on its monthly price chart. The crypto is currently trading around $3,592, which is just below the obstacle level of $3,600. Analysts believe that a move beyond this area could push the token's price toward $6,675, which would mark a sentiment.
Source: Twitter (X)
The Cup and Handle pattern has historically been a reliable indicator of strong upward price movement in various markets. The formation suggests that Ethereum’s price has recovered steadily from past declines and is now consolidating before another surge. Traders are closely monitoring Ethereum’s next move, as breaking through $3,600 could trigger significant buying momentum.
The Technical Setup Supporting Ethereum’s Rally
The Cup and Handle arrangement consists of a rounded bottom, followed by a smaller downward contemplation, which forms the handle. This formation is widely viewed as a bullish continuation signal, indicating that a prior trading trend is likely to resume.
In this case, the cup phase emerged after a price drop in 2022, followed by steady recovery through 2023 and 2024. The handle appeared as a minor consolidation late this year, which indicates the asset is preparing for a potential breakout. Analysts are confident in this setup, particularly because the $6,675 target aligns with the Fibonacci 1.618 extension level.
The Fibonacci retracement tool also highlights how the 0.618 level supported Ethereum’s recovery during earlier price movements, adding further confidence in this analysis. If Ethereum can break through $3,600, analysts expect a significant rally driven by these technical signals.
Market Reaction and Broader Sentiment
CryptoBullet1, a widely-followed cryptocurrency analyst, shared this bullish insight on Twitter, where their analysis quickly gained attention. They highlighted Ethereum’s potential, stating, “This month, we’re going to smash through the resistance.” This statement resonated with the crypto community and brought widespread attention to the chart setup.
The broader market sentiment has also been supporting Ethereum, as Bitcoin continues to hold strong above key levels. This has provided confidence to traders in altcoins, which often follow Bitcoin’s lead in bullish trends. If Ethereum moves beyond $3,600, traders expect a surge in demand, which could further amplify its upward momentum.
While the Cup and Handle pattern historically signals bullish outcomes, market conditions and external factors will ultimately influence the final outcome. Traders and analysts alike are waiting to see whether Ethereum can maintain its momentum and achieve the projected target of $6,675.
