Ethereum Poised for Bullish Breakout Above $3,500

Ethereum has entered an expansion phase following the completion of the 'Power of Three' (Po3) pattern, a technical analysis framework often used in institutional trading strategies. This pattern, which consists of three phases—accumulation, manipulation, and distribution—has been observed in Ethereum's price action over the past few weeks.

The first phase, accumulation, saw Ethereum consolidating within a specific price range. This was followed by a manipulation phase, characterized by a false breakdown that tested the lower bounds of the range. The final phase, distribution, began with a sharp upward move that reclaimed the range, signaling the start of the expansion phase.

According to the analysis, the manipulation phase has concluded, and Ethereum is now poised for a bullish breakout. This expansion phase is typically marked by strong directional momentum, suggesting that traders should prepare for a potential surge in price action rather than waiting for confirmation after the move has begun.

The projected price move, if the Po3 structure plays out fully, could send Ethereum above the $3,500 level. This would represent a significant rally from the current level around $2,386, with the price regaining bullish structure after a brief liquidity sweep below $2,200.

If Ethereum maintains this reversal and enters the forecasted expansion phase, it could signal renewed strength across the altcoin market. This is especially true if the move is accompanied by increased volume and declining Bitcoin dominance, which could further bolster Ethereum's upward trajectory.

Ethereum’s recent price structure aligns with a high-confidence Po3 setup, indicating that the recent dip may have been a manipulation event to shake out weaker hands. With the expansion phase potentially beginning, the focus now shifts to whether ETH can sustain upward momentum and push toward new local highs in the coming days.