Ethereum Forms Bullish Pattern Awaiting Breakout Near $2,600

Ethereum has formed a classic cup and handle pattern on its weekly chart, according to technical analysts. This pattern suggests a potential breakout if the price can rebound from the current neckline near $2,600. Analysts are closely monitoring the next few sessions to confirm this bullish setup.

According to analysis prepared by RoseTr, Ethereum is forming a large cup and handle pattern on the weekly chart. The price recently pulled back after testing the neckline resistance at around $2,600. RoseTr indicated that a successful rebound and breakout from this area could open the path toward a measured target of $4,204.69.

Ethereum is currently trading near $2,257, following a 10% drop during broader market turbulence. The price fell to $2,131 before recovering above $2,200. Technical levels to monitor include support at $2,100 and resistance near $2,350.

Analyst Ted Pillows stated, “If Ethereum rejects the previous $2,350 range low, we’ll probably retest the start impulse or go lower.” Despite the recent pullback, Ethereum remains well above its June lows and continues to trade within the handle formation. As long as ETH maintains the current structure, the breakout zone remains valid.

On-chain metrics, ETF inflows, and staking support Ethereum’s bullish long-term case. According to a June 22 update by CryptoOnchain via CryptoQuant, Ethereum’s market share on Binance has risen due to declining altcoin volumes. ETH’s transaction volume has remained stable, with many traders rotating capital from smaller tokens to Ethereum. This reflects a preference for network stability during uncertain macro conditions.

In addition, over 35 million ETH are now staked, accounting for nearly 30% of circulating supply. More than 4.57 million ETH have been burned under EIP-1559. Data from SoSoValue shows that ETH-based ETFs attracted $849 million in inflows in the past month.