Ethereum Poised for Potential Rally—Bullish Candlestick Patterns Suggest Reversal

Technical Breakdown

Ethereum (ETH/USD) is exhibiting compelling reversal signals after an extended decline. The asset has progressively weakened along a descending trendline from its previous resistance peak, but momentum indicators suggest the downtrend may be reaching exhaustion as price approaches a critical support zone.

Support Zone Validation

The support cluster between $2,920–$2,950 is displaying classic accumulation behavior. Multiple wicks within this zone signal defensive buying pressure, where market participants are actively defending lower levels. Early bounce attempts confirm that institutional and retail buyers are beginning to step in. Current price sits at $2.95K with a 24-hour decline of -0.66%, yet this proximity to support provides opportunity.

Bullish Candlestick Pattern Recognition

The chart structure reveals bullish candlestick patterns consistent with reversal setups. The price action shows a liquidity sweep followed by a rebound attempt—a textbook mechanism where bears briefly push lower to clear stops before bulls regain control. This sweep-and-rebound dynamic typically precedes impulsive upside moves in established support zones.

Entry Strategy

Traders should monitor for confirmation above the support zone. A decisive candlestick close above $2,950 with increased volume would validate the bullish thesis. Conservative entries above the support level offer favorable risk-reward positioning for swing traders targeting the upside targets ahead.

Price Objectives

• First Target: $3,189 (previous supply resistance)
• Second Target: $3,362 (intermediate resistance cluster)
• Extended Target: $3,500–$3,550 (major resistance zone)

Market Bias

As long as the support holds, the probability leans bullish. Any breakdown below $2,920 would invalidate this setup and suggest further downside exploration. The key to profiting from this reversal is waiting for clear confirmation rather than catching the exact bottom.

Trade ETH/USDT on Gate.io with confidence in established technical setups.