Ethereum Price Prediction: Cup and Handle Signals $6K Breakout, But..

Ethereum was poised for a breakout with its bullish cup and handle pattern targeting $6,000. Ethereum price prediction points to a pretty picture, but there is a catch.

Following the formation of the cup, Ethereum is now in the handle phase, preparing for an upward move. However, retail were betting against the price surge; will this slow down the breakout?

Ethereum Price Prediction: Bullish Cup and Handle Pattern Points to $6K

Ethereum’s monthly chart showed a bullish cup and handle pattern, signaling a possible major move.

The pattern suggested that after the cup formation, ETH was in the handle phase, preparing for a breakout. And if it does break out, then Ethereum could head all the way up to $6,000.

Ethereum retracted to form the handle, built a solid base, and is now setting up to explode higher.

If Ethereum moved past the resistance at $3,960, that will help to strengthen the positive sentiment about the cryptocurrency.

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Also, altcoins were expected to join in with Ethereum after the breakout. If ETH does happen to rise, the rest of the market could follow suit in a broader rally due to their correlation with its price action.

Ethereum price prediction technical setup indicates high potential for the Ethereum and altcoin markets in the coming days.

Ethereum Whales Have been Increasing Holdings Following $3,330 Price Break

Since price climbed above $3,330, Ethereum whale activity has risen decisively. From early October 2024, there were 440 addresses with over 10,000 ETH, by December 2024, that number grew to 560.

The surge in whale accumulation told us ETH was attracting more institutional interest as large investors gain more conviction in the future of Ethereum.

The whale accumulation correlated with ETH’s price movement. More whales buying ETH sent the price soaring, which supported the notion that big players were feeling good about the token.

This trend towards accumulation showed increased long-term market confidence, which in the majority of cases meant those investors assume that the market will increase and prices will be increasing.

We can expect the increase in whale activity to feature strongly in the Ethereum price trajectory. If continued in this fashion, this trend could push prices even higher.

The accumulation is still ongoing, and whales seem to be preparing themselves for further movements in the market and future growth.

Ethereum’s Bet Spread Hits Record High as Retail Investors Bet on Decline

Ethereum remained the leader in terms of capital flow to altcoins, but retail participants were betting against its price movement.

Data from CryptoQuant’s Net Taker showed that the spread between long and short positions on Ethereum had reached a record high.

More retail investors are betting on Ethereum’s price decline as Ethereum price prediction glimmers. Short positions are surpassing long positions. The sharp increase in short positions indicated heightened bearish sentiment.

The spread between long and short positions has widened significantly, suggesting that market sentiment is largely negative.

Many retail investors believed ETH could not return to its previous ATH, which reflected in the growing number of short bets.

Despite Ethereum’s dominance in market flows, this shift toward more short positions showed uncertainty in the market.

Investors were increasingly unsure whether ETH can recover its former highs, as indicated by the growing number of short bets.

The question remained whether these positions could be validated or whether Ethereum will prove resilient in the face of this bearish sentiment.