This Bullish Pattern Keeps Ethereum Price Under Buyers’ Control; is $2000 Within Reach?

After a remarkable recovery in the first month of 2023, the Ethereum price formed a local top at $1673. However, since then, the coin price has returned sideways and started consolidating in a fixed range. Having said that, this consolidation is part of a famous bullish reversal pattern called cup and handle. Here’s how this pattern could assist buyers in maintaining trend control,

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Key Points: 

• Under the influence of the cup and handle pattern, the Ethereum price holds a higher possibility of surpassing the $1675
• Amid ongoing consolidation, if the daily candle closes below the $1500 support, the bullish thesis will get invalidated.
• The intraday trading volume in Ether is $10.8 billion, indicating an 18% gain.

Source- Tradingview

The cup and handle pattern is formed by two U-shaped curves that create the shape of a cup, followed by a smaller downward curve that forms the handle. The cup is formed as the price of a stock decreases over an extended period of time, creating a “U” shape. The handle is a brief consolidation period where the price moves sideways or slightly downward before continuing its upward trend.

Thus, the Ethereum price is currently going through this short-handle phase. Amid the recent sell-off in the crypto market, the coin price reverted from $1680, indicating the seller continues to defend this level. As a result, the ETH price plunged 8.5% in the last three days and currently trades at the $1544 mark.

Also Read: Top 10 DeFi Lending Platforms In 2023

Though the ongoing consolidation may last longer with the negative sentiment across market participants, the coin holders remain bullish until the $1500 is defended. Furthermore, with the formation of a cup and handle pattern, the buyers are likely to end this consultation with a bullish breakout from $1684.

In an ideal bullish scenario, this pattern technical setup could lead a bullish rally to $2300.

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Technical Indicator

MACD: A steady downfall in MACD(Blue) and signal(Orange) lines indicated the coin is experiencing sustained selling at higher levels.

EMAs:  the 50-and-200-day EMA moving near the $1500 mark also contributes to the overall support strength of this level.                                  

Ethereum Coin Price Intraday Levels-

• Spot rate: $1543
• Trend: Bearish
• Volatility: High
• Resistance level- $1684 and $1785
• Support level- $1500 and $1420