Ethereum Forms Potential Bottom as Price Holds Above $1,900 Support

• ETH maintains $1,900 support, aligning with its ascending channel and reinforcing its probable recovery trend.
• A cup and handle print emerges, suggesting Ethereum may rebound if key resistance levels are surpassed.
• Ethereum’s targets include $3,400 and $4,200, with a breakout above resistance potentially directing further gains.

Ethereum (ETH) is shaping a possible bottom within its ascending channel, maintaining a key support level at $1,900. The asset is showing signs of a rounded bottom pattern, a formation linked to bullish momentum. The price action remains within an established channel, while indicators suggest a potential move upward.

Ethereum’s Cup and Handle Formation Emerges

According to an observation by Rose Premium Signals on X, Ethereum displays a rounded bottom pattern, often referred to as a cup and handle formation. This structure occurs when the price declines slightly before stabilizing and forming a smaller dip. Historically, this pattern signals a continuation of the prevailing trend. The setup indicates a possible rebound with Ethereum maintaining a key support level.

Source: Rose Premium Signals (X)

The $1,900 price level remains a significant demand zone. This support aligns with the lower boundary of Ethereum’s ascending channel, reinforcing its importance. Price movements within structured channels often see a reaction at these key points. If Ethereum maintains this level, the potential for a price recovery increases.

Momentum Stabilizes as RSI Resets and Targets Identified

Ethereum’s Relative Strength Index (RSI) is undergoing a reset, suggesting that momentum is stabilizing. A balanced RSI indicates that selling pressure is easing, potentially creating conditions for accumulation. Ethereum’s price movement remains within an ascending channel, with key levels acting as resistance points.

If the asset maintains its current structure, price targets emerge based on historical patterns and market positioning. A short-term price target for Ethereum stands at $3,400 because the resistance intersects with earlier rejected price points. The upward trend of Ethereum makes reaching $4,200 possible within the medium-term timeline.

The top end of the ascending channel defines this price level as the point where historical price reactions take place. If a breakout occurs, Ethereum could extend gains beyond $5,400 in the long term. Moving above the established channel could indicate strong momentum, potentially leading to further price expansion. However, maintaining support and overcoming resistance levels will be crucial in determining price direction.

Source