Ethereum has risen just over 1% in the last 24 hours. It is still lagging behind the broader crypto market, but has reduced its monthly loss to around 5.7%, while Bitcoin has fallen more than 10% this month. Even with the slow pace, the asset's price is showing early signs of strength again.
A known high pattern is forming, whales are increasing their positions and the chart is now close to a level that decides if this breakout is real.
A known pattern takes shape with the entry of the whales
Ethereum is forming a cup and handle pattern, a structure that often appears before trend reversals. The 'cup' is the rounded bottom from mid-November's low, and the 'handle' is the recent pullback. The edge of the pattern slopes slightly downward, but that does not invalidate it.
A slanted neckline still works as long as the price continues to respect the cup structure and returns to test the edge.
As soon as Ethereum started to move out of the handle, whales increased their positions. Between December 11 and 12, the supply of whales jumped from 100.41 million ETH to 100.50 million ETH.
This is a small but timely addition of 90,000 ETH, worth approximately $293 million at the current price.
Buying by whales during an attempted pattern breakout generally shows that large investors expect a continuation. This does not confirm the movement but supports the setup.
A clear breakout requires a daily close above $3,486, which is the neckline of the pattern. The asset is still about 7% below that line.
Ethereum price levels that confirm the breakout.
If Ethereum surpasses $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 close to $4,779, a move of 37% from the assumed neckline. Before reaching that point, the asset would encounter intermediate resistance levels at $3,712 and $4,249.
These areas historically slow down the price, thus acting as checkpoints on the way to the full target.
On the downside:
Weakness first appears with a daily close below $3,152, as this breaks the handle structure.
The setup is invalidated if Ethereum falls below $2,620, the lower support that marked the bottom of the cup.
At the moment, the bias is cautiously optimistic. The pattern is intact, whales are accumulating, and Ethereum is just one push away from its breakout line. Confirmation still needs that 7% move, but the setup is stronger than in recent weeks.
The article 'Ethereum Price Jumps and Sparks Hope in the Market' was first seen on BeInCrypto Brazil.
