The price of Ethereum has risen by more than 1% over the past twenty-four hours. It is still lagging behind the broader cryptocurrency market, but it has reduced its monthly loss to around 5.7%, while Bitcoin has fallen by more than 10% over the month. Even with the slow pace, the price of Ethereum shows early signs of strength again.
There is a known bullish pattern forming, whales are increasing their holdings, and the chart is now close to a level that determines whether this breakout is real.
A known pattern is forming with whale entries
Ethereum is forming a cup and handle pattern, a structure that often appears before trend reversals. The 'cup' is the rounded bottom from the mid-November low, and the 'handle' is the recent pullback. The edge of the pattern leans slightly downward, but this does not invalidate its validity.
The sloping neckline still works as long as the price respects the cup structure and returns to test the edge.
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Just when Ethereum started to move out of the handle, whales increased their positions. Between December 11 and 12, the whale supply jumped from 100.41 million ETH to 100.50 million ETH.
This is a small addition but timely, worth 90,000 Ethereum, approximately $293 million at the current price.
Buying the whale while attempting to break the pattern often shows that major players expect continuation. It doesn't confirm the move, but it supports the setup.
A clean breakout requires a daily close above $3,486, which is the neckline of the pattern. Ethereum is still about 7% below this threshold.
Ethereum price levels that confirm the breakout
If Ethereum reaches $3,486, it confirms the cup and handle structure and activates the measured target.
Based on the depth of the cup, Ethereum's price target is approaching $4,779, a 37% increase from the assumed neckline. Before reaching that, Ethereum will encounter temporary resistance levels at $3,712 and $4,249.
These areas historically slow down the price, so they act as checkpoints on the way to the full target.
On the downside:
Weakness first shows with a daily close below $3,152, as that breaks the handle structure.
The setup is canceled if Ethereum drops below $2,620, which is the lowest support that defines the bottom of the cup.
Currently, the bias cautiously leans towards the upside. The pattern is still intact, whales are accumulating, and Ethereum is just one push away from the breakout line. Confirmation still needs a 7% move, but the setup is stronger than it has been in weeks.
