Ethereum (ETH) is showing a potentially bullish long-term setup after reclaiming a major technical structure that had developed over nearly five years. Crypto analyst Trader Tardigrade highlighted the formation on Ethereum’s monthly chart, identifying it as a “busted ascending triangle” that could support a significant upside move.
An ascending triangle typically forms when price creates higher lows while facing resistance near the same level. In Ethereum’s case, the recent move below the pattern’s support initially suggested a bearish breakdown. However, ETH recovered the lost level, turning the breakdown into a potential false signal.
Source: Trader Tardigrade’s X Post
This failed breakdown could trap sellers who entered positions expecting further downside. If Ethereum continues holding above the reclaimed structure, the resulting shift in market positioning could provide additional fuel for buyers.
Trader Tardigrade believes the setup could eventually support a long-term target near $25,000, although the projection remains speculative.
Ethereum Price Holds Above Long-Term Support
Ethereum’s shorter-term technical picture remains mixed as the token consolidates following its August rally. ETH climbed from around $1,900 to above $2,500 before entering a period of sideways trading.
At the time of the analysis, ETH was trading around $2,457.94, slightly below its 20 EMA at $2,478.24 and 50 EMA at $2,471.79. However, the broader structure remains supported by the 100 EMA at $2,426.17 and the 200 EMA at $2,304.36.
Source: TradingView
The Relative Strength Index on the four-hour chart stands at 42.68, indicating limited short-term buying pressure. Narrow candlesticks also show market indecision as traders wait for a stronger directional signal.
A reclaim of the 20 EMA could improve Ethereum’s near-term momentum and strengthen the recovery. Conversely, a break below the 100 EMA near $2,426 could expose ETH to further weakness toward the $2,300 region.
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Ethereum Derivatives Activity Cools
The derivatives market on Ethereum appears more conservative. According to data from Coinglass, the daily trading volume for ETH decreased by 8.68% to $37.86 billion, indicating reduced trading activity amid analysis of the next significant price movement.
Source: Coinglass
Open interest fell 0.95% to $33.55 billion. The fall in open interest reflects that there has been a slight decrease in leveraged positions. This could mean that traders are being careful about making trades as ETH is stuck between support and resistance levels.
The reduced trading volume and open interest should not undermine the bearish technical setup for now. Rather, it means that Ethereum will require better participation for a breakout move.
ETH Flows to Robinhood Chain Surge to $730M
Additionally, there is activity on Ethereum via Robinhood Chain. According to Token Terminal, there has been an increase of around 150% in ETH transactions moving from Ethereum Layer 1 to Robinhood Chain’s Layer 2 within one month.
Source: Token Terminal’s X Post
The growth helped the overall value of the ETH bridge to Robinhood Chain surpass the mark of $730 million. The spike indicates the rising need to transfer liquidity from Ethereum to Layer 2 and may contribute to network activity.
The greater presence of ETH on Robinhood Chain would mean more liquidity for DApps and transactions. The move also underscores the growing role of Ethereum as a source of liquidity for developing Layer 2 infrastructures.
What Comes Next for Ethereum?
What comes next for Ethereum will be dependent on whether it manages to reassert control over the 20 EMA and 50 EMA lines while holding onto the 100 EMA. A breakout above resistance is expected to bolster the bullish setup.
In the meantime, further expansion of the Robinhood Chain could become yet another fundamental trigger. Assuming that the five-year pattern holds strong and market momentum picks up, the prediction of $25,000 made by Trader Tardigrade may receive more consideration. However, ETH will have to prove its breakout first.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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