The recent fluctuations in the cryptocurrency market have led to a notable shift for Ethereum as it dipped below the $2,500 threshold. This correction brought the price closer to $2,200, igniting fears among traders. However, indicators suggest that ETH may still be poised for a recovery in the near future.
Technical Indicators Point Toward Potential Upsurge
After losing traction at the $2,500 mark, Ethereum has faced substantial selling pressure. Despite this reality, insights from Rose Premium Signals indicate the possibility of an imminent recovery.
In a recent post on X, analysis from this crypto analyst highlights a robust technical setup for ETH. Notably, they have outlined the development of a Cup and Handle chart pattern on the weekly chart.
A Cup and Handle formation is viewed as a bullish continuation setup, signaling potential upward movement following a consolidation period. Given its bullish nature, the analyst believes ETH could soon rebound and reach significantly higher price levels.
Currently, Ethereum appears to be retreating from a key neckline around $2,600. Despite recent declines, the formation of this chart pattern is anticipated to catalyze a major upward movement for ETH.
If the positive trajectory continues as the Cup and Handle pattern develops, ETH may soon test previous peaks. As predicted by Rose Premium Signals, breaching the significant resistance could see the altcoin targeting the notable figure of $4,204.69.
Should Investors Consider Accumulating ETH Now?
While Ethereum has seen a drop, crypto analyst AlienOvicho has pointed out that the altcoin is nearing a price range considered optimal for entry. Following careful analysis of the current market dynamics, this expert has suggested a strategic buy zone between $2,140 and $1,970.
As selling pressure intensifies, the $2,140 to $1,970 price zone stands as a critical area for potential rebounds, currently being tested by Ethereum. Should ETH fail to recover in the upcoming days, traders will need to reassess their strategies with a focus on the subsequent demand zone around $1,800.
This lower level aligns with previous market behavior and may serve as a stronger foundation for future recovery if the overall market sentiment turns positive. However, a rebound within the next week is likely to propel ETH past the resistance level of $2,300.
As of the latest update, ETH is priced at $2,264, reflecting a slight decline of about 1% in the last 24 hours. Despite battling bearish sentiment, there are signs of enhanced trader optimism, with trading volume increasing by over 13% according to CoinMarketCap.
