Ethereum Surges 14% to $2,950, Breaking Multi-Month Cup and Handle Pattern

Ethereum (ETH) has surged past the $2,950 mark on July 14, 2025, marking a significant bullish breakout from a multi-month cup and handle formation. This move follows a prolonged period of sideways consolidation between $2,550 and $2,950, during which traders closely monitored the cryptocurrency's price action. The breakout is particularly notable as it follows a classic cup and handle pattern that developed over several months of 2025.

The cup and handle pattern is a well-known technical analysis formation that often signals a bullish continuation. In Ethereum's case, the pattern began with a steep downtrend that reversed into a structured recovery. The cup portion of the pattern is marked by a large, curved arc that started in early 2025, while the handle is characterized by a rectangular channel between $2,550 and $2,950. The recent breakout above $2,950 has validated this pattern, suggesting that Ethereum could be poised for further gains.

Analysts and traders are now focusing on the next major resistance level at $4,000, which is the projected move from the breakout structure. The 4-hour timeframe chart, using Coinbase data, shows Ethereum following a projected path that points toward the $4,000 mark. A blue trend projection arrow indicates that the price movement could climb above $3,800 in the coming weeks. The Relative Strength Index (RSI) also supports this bullish outlook, as it has recently moved above 63 with an upward slope, signaling improving momentum.

The green ascending trendline, which has acted as dynamic support throughout the recovery, aligns with the handle zone. This trendline has been respected since the pattern’s low near $1,500 earlier in the year. With multiple indicators confirming the breakout, Ethereum may be setting up for its next leg higher. The key support held near $2,550, while resistance near $2,950 was tested several times before the upper boundary was broken with a strong move upward.

Community reactions to the price action have been positive, with analysts expressing confidence in Ethereum's technical progression. The breakout has engaged a wide crypto audience, with traders closely monitoring Ethereum's ability to maintain price action above the $2,950 breakout zone. Sustained closes above this mark would validate the pattern and increase the probability of reaching the $4,000 zone. The blue projection on the chart reflects a steep incline once Ethereum clears $3,000 with volume.

Historical areas of price interaction, particularly between $2,855 and $2,950, now serve as key short-term support. The RSI’s trend, shaped by a green arc, mimics the price structure, adding weight to the bullish continuation narrative. If Ethereum holds the breakout zone near $2,950, it could trigger increased institutional and retail interest. The chart indicates that a move above $3,500 could happen swiftly if buying pressure increases.

The trajectory remains upward as long as Ethereum sustains price action above the green trendline and avoids sharp corrections below $2,850. The cup and handle breakout targets the $4,000 mark—a level not seen since late 2021. With momentum accelerating, the breakout structure implies bullish continuation, though some consolidation may occur near $3,200. Overall, the technical indicators and community sentiment suggest that Ethereum is poised for further gains in the near future.