Ethereum News Today: PancakeSwap (CAKE) Rises 9% as Ethereum Drives Crypto Market, Technical Pattern Points to 23% Upside

Generated by AI AgentCoin World
Wednesday, Jul 23, 2025 7:49 am ET1min read
CAKE
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ETH
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Aime RobotAime Summary

- PancakeSwap (CAKE) surged 9% daily, extending 42% monthly gains amid Ethereum's 16% weekly rise above $3,665.

- A Bearish ABCD harmonic pattern suggests CAKE could break key resistance, targeting $3.59 (23% higher) via the CD leg's bullish momentum.

- The 50-day moving average at $2.36 acts as critical support; a breakdown could invalidate the pattern and trigger a pullback.

- Analysts caution volatility risks despite the technical case, emphasizing the need for independent research amid ETH-driven crypto optimism.

PancakeSwap (CAKE) has surged 9% in a single day, extending its monthly gains to 42%, as broader cryptocurrency markets remain buoyed by Ethereum’s (ETH) 16% weekly rise above $3,665. Technical analysts highlight a developing harmonic pattern on CAKE’s daily chart, suggesting the token may break through key resistance levels. The Bearish ABCD pattern, despite its name, indicates potential bullish momentum during the CD leg, with prices projected to accelerate toward a defined target zone before any reversal [1].

The pattern’s structure begins at Point A near $1.516, rises to Point B, retraces to Point C at $1.928, and is now advancing along the CD leg toward Point D. This phase is critical for attracting momentum traders, as the CD leg historically amplifies trends. According to the analysis, the Potential Reversal Zone (PRZ) aligns with the 1.65 Fibonacci extension of the BC leg, projecting a target price of $3.59—a 23% increase from current levels. This projection is supported by the symmetry of the AB leg, reinforcing the technical case for continuation [1].

To maintain the bullish trajectory,

CAKE
must hold above its 50-day moving average at $2.36. A breakdown below this level could invalidate the pattern and trigger a pullback. The 50-day moving average has transitioned into a dynamic support line, underscoring its importance for sustaining the uptrend. Analysts caution that while the pattern provides a compelling case for an upside move, market conditions and external factors could alter the trajectory [1].

The cryptocurrency market’s overall strength, driven by ETH’s performance, continues to fuel optimism for altcoins like CAKE. However, traders are advised to conduct independent research and exercise caution, as the market remains volatile. The projected $3.59 target represents a significant milestone but is contingent on maintaining momentum and avoiding key resistance clusters.

Source: [1] [PancakeSwap (CAKE) To Rise Higher? Key Harmonic Pattern Signals Potential Upside Move] [https://coinmarketcap.com/community/articles/6880c2909a145369844a9d14/]