Ethereum has slightly risen by more than 1% in the past 24 hours. Although it still lags behind the overall crypto market, it has reduced this month's losses to about 5.7%, while Bitcoin has dropped more than 10% this month. Although moving slowly, the price of Ethereum is showing initial signs of strength again.
The well-known bullish pattern is forming, and the whales are increasing their holdings, with the chart approaching a crucial level that will determine whether this breakout is real or not.
A familiar pattern is emerging as the whale group starts to come in.
Ethereum is forming a cup and handle pattern, which is a structure that often appears before a trend reversal. The cup is formed from rounded lows since mid-November, while the handle is the latest consolidation. The top edge of the pattern slopes down slightly but does not diminish the integrity of this pattern.
The sloping neckline remains valid as long as the price respects the structure of the cup and re-tests the upper edge again.
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As soon as Ethereum starts to move, breaking from the handle, whales begin to increase their holding status. Between December 11 and December 12, the amount of ETH held by whales increased from 100.41 million ETH to 100.50 million ETH.
This is a slight increase but comes at the most opportune time, with 90,000 ETH valued at approximately 293 million USD at current prices.
Whales buying during a price attempt to breakout from the pattern often indicate that large holders expect a continuation trend, which does not definitively confirm this movement but supports the emerging structure.
A clear breakout must close daily above 3,486 USD, which is the neckline of this pattern, while Ethereum remains about 7% below that line.
The price level of Ethereum that confirms the breakout.
If Ethereum breaks above 3,486 USD, it confirms the cup and handle structure, opening up movement towards the measurable target.
Using the depth of the cup as a benchmark, the price target for Ethereum will be close to 4,779 USD, which equals a 37% move from the neckline. Ethereum will face resistance between 3,712 USD and 4,249 USD before reaching this target.
These areas have previously slowed prices, thus serving as checkpoints on the way to the ultimate target.
In the case of a downtrend:
Weakness will become apparent if the daily closes below 3,152 USD, as it breaks the handle structure.
This pattern will be invalid if Ethereum drops below 2,620 USD, which is the lowest support that has been the bottom of the cup.
Currently, the outlook remains cautiously bullish; the pattern is still intact, whales are still buying, and Ethereum is close to the breakout line by just one more step. Confirmation still requires a further 7% rise, but the pattern looks significantly stronger than in recent weeks.
